Millions of iPhone users who might be eligible for a portion of Apple’s $250 million settlement over delayed artificial intelligence features are advised not to expect a payment soon. Although a federal court granted preliminary approval to the settlement, numerous legal steps remain before compensation can be distributed. Payments are unlikely for at least another year.
Impact on Apple Customers
The settlement affects approximately 36 million to 37 million Apple customers who purchased eligible iPhone models. Apple heavily promoted its Intelligence platform and an upgraded Siri assistant that were unavailable at launch. While Apple does not admit wrongdoing, the settlement is among the largest consumer settlements related to AI marketing claims. There is increased scrutiny in the industry over how tech companies advertise AI products.
Background of the $250 Million Payment
The class-action lawsuit alleged Apple misled consumers by advertising AI-powered Siri capabilities as a key selling point for iPhone 16 and specific iPhone 15 models before the features were ready. According to court filings, Apple’s marketing persuaded customers to buy devices based on promises of enhanced Siri features, which were delayed.
“Roughly 36 million customers are eligible, but the real story isn’t the $25-$95 per device,” Michael Ryan, a finance expert from MichaelRyanMoney.com, explained. “It’s that Apple shipped products in June 2024 on the promise of features that didn’t show up for nearly two years.”
Some Apple Intelligence features, including Writing Tools, Genmoji, and Visual Intelligence, eventually arrived. However, the advanced Siri abilities highlighted in Apple’s ads were unavailable at purchase. “If you bought an iPhone 16 or eligible iPhone 15 Pro between June 2024 and March 2025, you bought it partly on the strength of Siri capabilities that did not exist,” Ryan noted. “Apple advertised them as central to the new hardware, yet shipped phones without them.”
Apple agreed to settle the lawsuit in May.
An Apple spokesperson commented, “We resolved this matter to stay focused on delivering the most innovative products and services to our users.”
Customer Waiting Period
The settlement’s preliminary court approval means that further steps are necessary. A final ruling has yet to be issued. Class members must receive notifications, submit claims, and be allowed time to object or opt out. Appeals and court decisions must also be resolved before payments are distributed.
Consequently, eligible customers may wait over a year for checks or direct payments.
Eligibility for Compensation
U.S. consumers who purchased the following between June 10, 2024, and March 29, 2025, are covered:
- Any iPhone 16 model
- iPhone 15 Pro
- iPhone 15 Pro Max
Approximately 36 million to 37 million devices might qualify.
Potential Payout Amounts
Eligible consumers might receive between $25 and $95 per device. The final amount depends on valid claims and settlement dynamics. Final figures will be available after the claims process concludes.
“As companies race to sell hardware around artificial intelligence, they may face increasing legal and financial consequences if marketing gets too far ahead of what the technology can actually do,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, remarked.
Settlement Procedures
The settlement requires final federal court approval before payments occur. After approval, customers receive claims submission notices. Appeals or court proceedings could cause further delays.
Implications for the Tech Industry
“For the tech industry, the bigger risk isn’t the $250 million check, it’s the precedent,” Ryan emphasized. “If Apple took a $250 million hit for AI overpromising, every company now sees a dollar value linked to the gap between promised features and working features.”
Contact Newsweek editors Jason Lemon and Sam Wilson for more details.