Having been ‘killed’ for 5 years, Apple still loses money because of iPhone 7

1. All customers who experience a negative error on the iPhone 7 can be compensated for a total of $35 million. But with that comes quite strict requirements.

Apple has admitted that the microphone issue appears on iPhone 7 and iPhone 7 Plus models running iOS 11.3 or later. Photo: GIGA.

Apple has reached an agreement on a $35 million compensation package for iPhone 7/7 Plus users with audio microphone errors. That means if you own one of these phones, you can get your money back.

The minimum amount users receive is 50 USD and the maximum is 394 USD. July 3 is the deadline to apply for a refund. Because the judge in the Northern District Court of California has just approved an order to extend the deadline for filing a claim by one month, from June 3 to July 3.

U.S. customers who have used the defective product from September 16, 2016 to January 3, 2023 can apply for compensation. But with that comes quite strict requirements. Eligible people must belong to one of 2 groups. One is those who have paid out of pocket to repair an iPhone 7 or 7 Plus due to an audio issue. The second is customers who have reported the problem but have not paid for repairs.

In particular, customers who pay out of pocket for the company to replace and repair the microphone will receive “an equivalent payment of at least $50 and no more than $349”. Meanwhile, those who reported the audio problem to Apple but did not pay for the replacement of the component will receive a “maximum payment of $125.”

Previously, in 2018, Apple admitted that the microphone problem appeared on iPhone 7 and iPhone 7 Plus models running iOS 11.3 or later. MacRumors reports that customers who encounter the error will notice that the speaker button turns gray during voice calls. The issue can also prevent customers from hearing during a FaceTime voice or video call.

Apple then provides a document, which includes troubleshooting steps for employees and partners to follow. Specifically, Apple’s authorized service provider will first ask customers to disconnect or turn off any Bluetooth headphones or other audio accessories, connected to the iPhone.

Apple must compensate iPhone 7/7 Plus users $35 million. Photo: Bloomberg.

If the speaker button is still grayed out during a call, the carrier will run an audio diagnostic. Devices that experience failures will display a “device cannot detect the dock” or “accessory not supported” warning in the diagnostic. In that case, the retailer will accept iPhone repairs.

If the iPhone 7 or iPhone 7 Plus has an expiration warranty error, Apple says partners can request repairs on an exceptional basis. Apple’s documentation doesn’t specify whether the repair is free. According to Apple’s recent statement, the average customer paid $193 out of pocket to the company to repair or replace this defect.

However, in July 2018, Apple abruptly ended the free microphone bug fix program without notifying users. The company also removed internal documents related to the microphone issue and stopped all free repairs at Apple Stores. Later, Apple’s retail and support staff also did not admit this error.

Based on the number of people affected, many people claim this is a hardware bug. They questioned why Apple didn’t get free repairs and forced customers to pay for repairs.

In 2019, a lawsuit was filed in court, alleging that the iPhone 7/7 Plus had an audio problem related to the “audio IC chip”. The plaintiffs also accuse Apple of violating consumer protection laws and violating warranties.

Apple does not admit that the phone has audio problems. “Apple denies all allegations made in the lawsuit. The company denies that the iPhone 7 or iPhone 7 Plus experienced any sound problems, and also denies that it did anything improper or illegal,” the settlement agreement said.

However, in the end, the iPhone manufacturer still had to pay compensation to solve the case.