Consumers who had battery problems with older versions of the popular iPod digital music player will get US$50 vouchers and extended service warranties under a tentative settlement in a class-action lawsuit.
Lawyers representing consumers in the state court case against Apple Computer Inc said Thursday that the settlement could affect as many as 2 million people in the US who purchased first, second and third generation iPods through May last year.
Cupertino-based Apple confirmed the settlement but deferred immediate comment.
In the fall of 2003, eight consumers filed a suit, alleging that the iPod failed to live up to claims that the rechargeable battery would last the product's lifetime and play music continuously for up to 10 hours.
Thousands of consumers complained that the battery -- which cost US$99 to replace -- lasted 18 months or less and they could only play music for four hours or less before recharging it. Environmentalists were also upset, saying the short-lived battery encouraged consumers to dispose of their old devices, which were ending up in landfills and leaking toxins.
The iPod debuted in 2001, with early versions costing up to US$400. Considered a must-have accessory on college campuses and a top pick for holiday shoppers ever since, the device has been a windfall for Apple.
Revenue in the most recent quarter was a record US$3.24 billion, up nearly 70 percent from US$1.91 billion in the year-ago quarter. Nearly one-third of quarterly sales resulted from the iPod.
According to the terms of the settlement, people who fill out a claim form are entitled to receive US$50 redeemable toward the purchase of any Apple products or services except iTunes downloads or iTunes gift certificates. They can redeem the voucher within 18 months of final settlement approval at any bricks-and-mortar Apple Store or online.
Consumers who had battery troubles can also get their battery or iPod replaced through the lawsuit. Apple currently replaces or repairs defective products that are returned within one year but the class-action settlement extends the warranty to two years, plaintiffs' lawyers said.
A judge in California's Superior Court for San Mateo County initially approved the settlement last month and consumers began receiving notifications by e-mail and letters this week. A judge will hold another hearing Aug. 25 to give final approval.
It's unclear how many consumers will file claims.
Within a year, lawyers had received e-mails and calls from more than 12,000 people who said their iPod batteries failed to meet expectations.
Environmentalists applauded the deal but emphasized it doesn't require Apple to change the design of the iPod, which includes lead and other hazardous materials.
Apple is the target of a yearlong campaign by environmental groups, which are asking executives to reduce or eliminate recycling fees for consumers and build in-store recycling centers. They say Apple has done little to discourage the perception of the iPod as disposable.
"Apple has to admit they messed up and made a battery that doesn't last very long and doesn't have the ability to be easily replaced," said Gopal Dayaneni, director of sustainable technology program at Silicon Valley Toxics Coalition. "Failure to do so is evidence of their environmental irresponsibility."
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