Apple has reportedly agreed to pay $US53 million ( £34.5 million) to settle a warranty dispute.
Wired is reporting that Apple is agreeing to pay the money to settle a class action regarding allegations Apple improperly denied warranty coverage for iPod Touch and iPhone owners.
The settlement, set to be filed in a San Francisco federal court soon, would result in cash reimbursement to possibly hundreds of thousands of such customers, Wired said.
According to the document, Apple allegedly denied warranty coverage for iPod Touch and iPhone devices based on a triggered headphone jack or dock liquid contact indicator (LCI), or tape visible through the headphone jack or adjacent to the dock connector, which had turned pink.
Apple refused to honour warranties if there was a triggered LCI, no matter what the problem, according to several combined lawsuits, Wired said. However the tape’s manufacturer 3M said humidity and not water contact could have caused the indicator to turn pink.
Affected devices include the iPhone 3G, iPhone 3GS and second and third generation iPod Touches. Settlements range from $US105 to $US300 depending on the device, but Apple would deposit £US53 million as a settlement fund in total.
Apple denies any wrongdoing in the settlement, which requires a judge’s approval, Wired reported.
What Mobile is awaiting comment from Apple.