Apple apologizes after outcry over slowed iPhones

Apple CEO Tim Cook stands in front of a screen displaying the IPhone 6 during a presentation at Apple headquarters in Cupertino, California October 16, 2014.

By Stephen Nellis

(Reuters) – Facing lawsuits and consumer outrage after it said it slowed older iPhones with flagging batteries, Apple Inc is slashing prices for battery replacements and will change its software to show users whether their phone battery is good.

In a posting on its website Thursday, Apple apologized over its handling of the battery issue and said it would make a number of changes for customers “to recognize their loyalty and to regain the trust of anyone who may have doubted Apple’s intentions.”

Apple made the move to address concerns about the quality and durability of its products at a time when it is charging $999 for its newest flagship model, the iPhone X.

The company said it would cut the price of an out-of-warranty battery replacement from $79 to $29 for an iPhone 6 or later, starting next month. The company also will update its iOS operating system to let users see whether their battery is in poor health and is affecting the phone’s performance.

“We know that some of you feel Apple has let you down,” Apple said in its posting. “We apologize.”

On Dec. 20, Apple acknowledged that iPhone software has the effect of slowing down some phones with battery problems. Apple said the problem was that aging lithium batteries delivered power unevenly, which could cause iPhones to shutdown unexpectedly to protect the delicate circuits inside.

That disclosure played on a common belief among consumers that Apple purposely slows down older phones to encourage customers to buy newer iPhone models. While no credible evidence has ever emerged that Apple engaged in such conduct, the battery disclosure struck a nerve on social media and elsewhere.

Apple on Thursday denied that it has ever done anything to intentionally shorten the life of a product.

At least eight lawsuits have been filed in California, New York and Illinois alleging that the company defrauded users by slowing devices down without warning them. The company also faces a legal complaint in France, where so-called “planned obsolesce” is against the law.

(Reporting by Stephen Nellis; Editing by Andrew Hay)

Consumer Reports to consider cyber security in product reviews

A lock icon, signifying an encrypted Internet connection, is seen on an Internet Explorer browser in a photo illustration in Paris April 15, 2014. REUTERS/Mal Langsdon

(Reuters) – Consumer Reports, an influential U.S. non-profit group that conducts extensive reviews of cars, kitchen appliances and other goods, is gearing up to start considering cyber security and privacy safeguards when scoring products.

The group, which issues scores that rank products it reviews, said on Monday it had collaborated with several outside organizations to develop methodologies for studying how easily a product can be hacked and how well customer data is secured.

Consumer Reports will gradually implement the new methodologies, starting with test projects that evaluate small numbers of products, Maria Rerecich, the organization’s director of electronics testing, said in a phone interview.

“This is a complicated area. There is going to be a lot of refinement to get this right,” Rerecich said.

The effort follows a surge in cyber attacks leveraging easy-to-exploit vulnerabilities in webcams, routers, digital video recorders and other connected devices, which are sometimes collectively referred to as the internet of things.

“Personal cyber security and privacy is a big deal for everyone. This is urgently needed,” said Craig Newmark, the founder of Craigslist who sits on the board of directors at Consumer Reports.

In one high-profile October attack, hackers used a piece of software known as Mirai to cripple an internet infrastructure provider, blocking access to PayPal, Spotify, Twitter and dozens of other websites for hours. Another attack in November shut off internet access to some 900,000 Deutsche Telekom customers.

Security researchers have said the attacks are likely to continue because there is little incentive for manufacturers to spend on securing connected devices.

“We need to shed light that this industry really hasn’t been caring about the build quality and software safety,” said Peiter Zatko, a well-known hacker who is director of Cyber Independent Testing Lab, one of the groups that helped Consumer Reports establish the standards.

The first draft of the standards is available online at https://thedigitalstandard.org.

Issues covered in the draft include reviewing whether software is built using best security practices, studying how much information is collected about a consumer and checking whether companies delete all user data when an account is terminated.

Jeff Joseph, senior vice president for the Consumer Technology Association, called the decision by Consumer Reports a “positive step” but cautioned that the group “must be very clear about how they score products and the limitations of what consumers can expect.”

(Reporting by Jim Finkle in Boston; Editing by Peter Cooney and Lisa Shumaker)