Apple confirms U.S. agencies are looking into iPhone slowdown

Thursday, 01 Feb, 2018

However, this particular scandal has now prompted a full-blown federal investigation, Bloomberg reports, as the US Justice Department and the Securities and Exchange Commission begin an inquiry into whether Apple violated any securities laws relating to financial disclosures.

"We have received questions from some government agencies and we are responding to them", the company said in an emailed statement.

U.S. prosecutors and the country's stock market regulator are examining Apple's admitted practise of purposefully slowing down older iPhones to extend battery life, the Wall Street Journal and Bloomberg reported on Tuesday.

The purported investigations by the DOJ and the SEC wouldn't be the first pushes for more information from Apple.

Of course, Apple isn't the only company working on unified computing experiences. Apple said it did so to keep older iPhones operational as the batteries matured, and later apologized to consumers for keeping the practice under wraps.

Last quarter, Apple sold 46.677 million iPhone units, up roughly 2.6% year-over-year. We're not sure how many users have been inconvenienced by the lack of Face ID approval so far, but either way it does seem unusual that Apple did not include it in the first place.

Apple says the reason for the software feature is to prevent unexpected iPhone shutdowns, not to encourage users to update to a newer iPhone.

The slowdowns occur when an older iPhone's battery reaches a certain, unspecified point of low health and can be fixed if a user replaces the battery. Bank of America downgraded Apple from a "buy" rating to a "neutral" rating and increased their price target for the company from $180.00 to $220.00 in a report on Wednesday, January 17th.

The company confirmed it had been contacted by officials from the United States government and said it was cooperating fully by answering the questions supplied. Users will be able to turn off the performance limitation option, but it's a course of action the company doesn't recommend. Any iPhone 6 or later is eligible, regardless of battery health. The company wants to cut back on complaints via customer support and other outside criticism by really going after quality and performance, but it might face some backlash from customers with this approach.

The land could see Wistron expanding its assembly operations to also cater to clients other than Apple, industry officials said.