5 years after being "killed", Apple is still losing money because of iPhone 7

Apple has acknowledged a microphone issue affecting iPhone 7 and iPhone 7 Plus models running iOS 11.3 or later.

Apple has reached a settlement agreement worth35 million USDfor iPhone 7/7 Plus users with audio microphone issues. That means if you own one of these phones, you can get a refund.

The minimum amount a user can receive is50 USDand maximum is394 USD. July 3 is the deadline to file a claim for refund. Because a judge in the Northern District of California just approved an order extending the deadline for filing a claim for compensation by 1 month, from June 3 to July 3.

US customers who used the defective product between September 16, 2016 and January 3, 2023 can apply for compensation. But the requirements are quite strict. Eligible people must fall into one of two groups. One is those who paid out of pocket for repairs to their iPhone 7 or 7 Plus due to audio issues. The other is customers who reported the problem but have not yet paid for repairs.

Customers who pay out of pocket for the company to replace and repair their microphones will receive "a payment equivalent to at least50 USDand not too349 USD". Meanwhile, those who reported audio issues to Apple but did not pay for replacement parts will receive “the maximum compensation125 USD”.

Apple previously acknowledged a microphone issue in 2018 that affected iPhone 7 and iPhone 7 Plus models running iOS 11.3 or later. MacRumors reported that customers experiencing the issue would notice the speaker button turning gray during voice calls. The issue could also cause customers to be unable to hear audio during FaceTime voice or video calls.

Apple then provides a document that includes troubleshooting steps for employees and partners to follow. Specifically, Apple Authorized Service Providers will first ask customers to disconnect or turn off any Bluetooth headphones or other audio accessories that are connected to the iPhone.

Apple must compensate35 million USDfor iPhone 7/7 Plus users

If the speaker button remains grayed out during a call, your carrier will run audio diagnostics. Devices that are experiencing issues will display a “device cannot detect dock” or “accessory not supported” warning in the diagnostics. In that case, your retailer will accept the iPhone for repair.

If your iPhone 7 or iPhone 7 Plus is out of warranty, Apple says partners can request repairs under an exception. Apple's documentation doesn't specify whether the repairs will be free. According to a recent statement from the company, on average, customers pay out of pocket.193 USDto the manufacturer for repair or replacement of this defect.

However, in July 2018, Apple abruptly ended its free microphone repair program without notifying users. The company also deleted internal documents related to the microphone issue and stopped all free repairs at Apple Stores. After that, Apple retail and support staff also did not acknowledge the error.

Based on the number of people affected, many people claim that this is a hardware problem. They question why Apple does not fix it for free and force customers to pay for the fix.

In 2019, a lawsuit was filed, alleging that the iPhone 7/7 Plus had audio issues related to the “audio IC chip.” The plaintiffs also accused Apple of violating consumer protection laws and breaching the warranty.

Apple denies the phone has audio issues. “Apple denies all allegations made in the lawsuit. It denies that the iPhone 7 or iPhone 7 Plus has any audio issues, and it denies that it has done anything wrong or illegal,” the settlement reads.

However, in the end, the iPhone manufacturer still had to pay compensation to resolve the case.