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Apple To Pay $490 Million Over iPhones In China
https://www.whatjobs.com/news/apple-news/apple-to-pay-490-million-over-iphones-in-china
By Nithya Bose in Apple News, posted March 18, 2024
Apple has agreed to a $490 million settlement in a lawsuit accusing it of hiding a declining iPhone demand in China in 2018.
The settlement was proposed in the US District Court in Northern California and is awaiting Judge Yvonne Gonzalez Rogers' approval.
While denying any wrongdoing, Apple chose to settle to avoid a lengthy legal battle, and has not commented further.
Plaintiff attorney Shawn Williams praised the settlement as a big win for shareholders.
The lawsuit, led by Norfolk County Council of the UK's Norfolk Pension Fund, was initiated in 2019.
It alleged Apple violated federal securities law through misleading statements about its China performance.
Despite CEO Tim Cook's assertions of strong sales in China during a 2018 analyst call, Apple later announced a downturn in its iPhone business.
It led to a substantial market value drop.
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This financial repercussion came after Apple decided to stop reporting unit sales data.
The tech giant argued arguing it didn't reflect the company's business strength adequately.
The plaintiffs argued that Apple was aware of its challenges in China and should have been transparent sooner.
Following a dramatic revenue projection cut in early 2019, Apple's stock plummeted, erasing nearly $75 billion in market value.
Amid ongoing competition in China, Apple has recently offered rare discounts to boost iPhone sales in the crucial market.
However, sales have continued to decline, with the company ranking fourth in China's smartphone market share, trailing behind leader Vivo, as per Counterpoint Research data.
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