Published: Wed, January 31, 2018
Sci-tech | By Brandy Patterson

Apple's iPhone Slow Down Prompts Government Probe By SEC, DOJ

Apple's iPhone Slow Down Prompts Government Probe By SEC, DOJ

The government has reportedly requested information from Apple and wants to determine if it misled investors about the performance of older iPhones by not telling them.

Analyst Toni Sacconaghi of Bernstein cut both his second-quarter and full-year forecasts for iPhones but said he did not expect Apple's 2018 profit to fall steeply because of changes to US tax law that will bring the company's rate down to 18 percent.

It was said to be too early in the probe to speculate regarding the potential for Apple to be accused of wrongdoing.

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Yesterday, we told you about a report published by Japan's Nikkei, which cited the AppleiPhone supply chain in passing along speculation about iPhone X production this quarter.

Apple was not immediately available for comment.

Combined with concerns about the impact of an imbroglio in which Apple acknowledged slowing down phones with worn-out batteries, the weak iPhone X performance has again raised the question of whether the company can keep up its rapid revenue growth without a new hit product.

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It has denied incorporating planned obsolescence and plans to release a software update later this year that will let people turn off the iPhone-slowing feature. As part of its public apology, Apple cut the prices of battery replacements in its stores to $29, a $50 discount.

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.

The California-based group faces lawsuits in the United States and Russian Federation over the matter. On Thursday, Apple will report earnings for its fiscal first quarter.

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