Apple agrees to $250 million settlement over iPhone AI claims

Apple has agreed to pay $250 million to settle class-action lawsuits alleging it misled US buyers about AI features on select iPhone models. Eligible consumers who purchased iPhone 16 series or certain iPhone 15 Pro models between June 10, 2024, and March 29, 2025, can claim up to $95 each. The company denied wrongdoing in the proposed deal.

Apple reached a settlement to resolve claims that it misrepresented the availability of Apple Intelligence features, particularly enhanced Siri capabilities, on iPhone 16, iPhone 16E, iPhone 15 Pro, and iPhone 15 Pro Max devices. The lawsuits stemmed from advertising that highlighted features like an upgraded Siri, which did not launch with the iPhone 16 in September 2024 or arrive as promised on older models. Apple pulled some ads after announcing delays in March 2025 and has yet to deliver the full features, though it anticipates future software updates at no extra cost, according to the settlement terms reported by The Financial Times and CNET on May 5, 2026. The deal awaits judicial approval and does not require Apple to admit fault. Qualifying US buyers can claim from the $250 million pool, starting at $25 per device depending on claims filed, with a maximum of $95 each. An Apple spokesperson stated, 'Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.' The company cited rolled-out features like Visual Intelligence, Live Translation, Writing Tools, Genmoji, and Clean Up since the partial Apple Intelligence launch. Apple plans to introduce the new Siri this year via iOS 27, powered partly by Google's Gemini models.

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Apple's upcoming updated iPhone, iPads, and MacBook Pro with new processors and AI features, arranged in a professional product showcase.
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Apple plans imminent updates for iPhone, iPads, and MacBook Pro

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Apple is preparing to launch updated versions of its low-end iPhone, basic iPad, iPad Air, and high-end MacBook Pros in the coming weeks, according to reports. These changes include new processors and added features like AI support, while keeping prices steady. The updates follow Bloomberg reporter Mark Gurman's latest insights on Apple's 2026 hardware roadmap.

Mainland China users briefly accessed Apple Intelligence in the early hours of Tuesday before the update was pulled, raising questions over compliance and regulatory approval. An expert warned that the move could lead to administrative penalties.

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Apple's upcoming iOS 26.4 update will introduce five upgrades for iPhone users, according to TechRadar. However, the release shows no indication of the anticipated new Siri features. The report questions whether Apple has missed an opportunity with this omission.

Apple is reportedly considering integration of third-party AI chatbots, such as ChatGPT and Gemini, into its CarPlay system. This move aims to expand AI accessibility in vehicles. The development was highlighted in a recent TechRadar article.

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Apple's anticipated iPhone 17E, successor to the iPhone 16E, is rumored to incorporate upgrades like the A19 processor and MagSafe support while maintaining a $599 starting price. Reports suggest a possible launch in early 2026, potentially at an Apple event in March. These enhancements could make the budget model more appealing by borrowing elements from higher-end iPhones.

Apple has launched the iPhone 17e, its latest affordable flagship, discontinuing the iPhone 16e. Google simultaneously released the Pixel 10a. Both offer premium features at budget prices in India.

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