The Wall Street Journal is reporting that the Apple iPod battery settlement could cost the company as much as $100 million, if a judge approves the terms. Apple Computer (AAPL) shares fell 3.8% in pre-market trading.
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“Tentatively settling a lawsuit that had tarnished the golden image of its iPod music players, Apple Computer Inc. has agreed to give $50 vouchers and extended warranties to customers who have had problems with the lifespan of their batteries,” Matthew Yi reports for The San Francisco Chronicle. “As many as 2 million people may be affected by poor battery life in some older iPods, which could translate to as much as $100 million worth of givebacks for Apple, Eric Gibbs, a San Francisco lawyer representing the consumers, said Thursday.”
“However, analysts said they believe the financial impact on Apple’s bottom line could be far less because a majority of iPod owners probably would not file claims. Also, scores of customers may not still have their older iPods because many routinely ditch their players for newer versions, said Gene Munster, an analyst at Piper Jaffray & Co.,” Yi reports.
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