Apple to pay up to $95 to some iPhone buyers in $250M AI settlement

Apple has reached a proposed $250 million settlement of a U.S. class action accusing the company of overstating the availability of 'Apple Intelligence' and upgraded Siri features at the time of the iPhone 16 launch, with eligible consumers potentially receiving up to $95 per device.

The litigation stems from allegations that Apple’s marketing around WWDC 2024 and subsequent iPhone launch created a reasonable expectation among buyers that new AI-powered Siri capabilities would be available immediately; plaintiffs say that expectation influenced purchasing decisions. The proposed settlement was filed for preliminary approval in federal court and does not include an admission of wrongdoing by Apple.

Under the terms outlined in court papers, U.S. purchasers of specified devices — principally iPhone 16 models and certain iPhone 15 Pro variants bought between June 10, 2024 and March 29, 2025 — may submit claims. The $250 million settlement fund will be allocated among claimants; per-device payments could vary (reports indicate a range up to $95 per device) depending on claim volume and administrative costs, with final amounts subject to court approval.

While $250 million is modest relative to Apple’s market capitalization, the settlement underscores heightened legal and reputational risks around AI marketing claims. Market reaction has been muted so far, with analysts noting the financial impact on earnings will be limited but the case may prompt tighter messaging and compliance scrutiny across the tech sector.

Legal commentators expect notice to class members and a claims submission window if the court grants preliminary approval; outcomes may include cash payments, potential software update commitments or other remedies negotiated in final documentation. Investors will watch both the court’s decision and any operational steps Apple takes to deliver or clarify its Apple Intelligence roadmap.