iPod Class-Action Suit Settled

Apple Offers $50 Credit, Warranties For iPod Battery Problems

(AP)  Consumers who had battery problems with older versions of the popular iPod digital music player will get $50 vouchers and extended service warranties under a tentative settlement in a class-action lawsuit.

Lawyers representing consumers in the state court case against Apple Computer Inc. said Thursday that the settlement could affect as many as 2 million people nationwide who purchased first-, second- and third-generation iPods through May 2004.

Cupertino-based Apple confirmed the settlement but deferred immediate comment.

In the fall of 2003, eight consumers filed a suit, alleging that the iPod failed to live up to claims that the rechargeable battery would last the product's lifetime and play music continuously for up to 10 hours.

Thousands of consumers complained that the battery — which cost $99 to replace — lasted 18 months or less and they could only play music for four hours or less before recharging it. Environmentalists were also upset, saying the short-lived battery encouraged consumers to dispose of their old devices, which were ending up in landfills and possibly leaking toxins.

The iPod debuted in 2001, with early versions costing up to $400. Considered a must-have accessory on college campuses and a top pick for holiday shoppers ever since, the device has been a windfall for Apple.

Revenue in the most recent quarter was a record $3.24 billion, up nearly 70 percent from $1.91 billion in the year-ago quarter. Nearly one-third of quarterly sales resulted from the iPod.

According to the terms of the settlement, people who fill out a claim form are entitled to receive $50 redeemable toward the purchase of any Apple products or services except iTunes downloads or iTunes gift certificates. They can redeem the voucher within 18 months of final settlement approval at any bricks-and-mortar Apple Store or online.