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Apple Accused of Fraud for Hiding Dop in iPhone Sales: Report

Apple’s disclosures in January caused its stock price to fall by more than $15 per share, or more than 9 percent

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The Apple logo is shown outside the company's Worldwide Developers Conference in San Francisco, California. VOA

A lawsuit filed in the US has alleged that Apple violated the country’s Securities Exchange Act by hiding a slowdown in the demand for iPhones, especially in China, the media reported.

The City of Roseville employees’ retirement fund filed the suit on Tuesday in Northern California US District Court, The Mercury News published from San Jose reported.

The lawsuit claimed that Apple knew in November its iPhone sales were hit, but refrained from revealing it to investors then, leading to economic loss for investors.

The lawsuit seeks class-action status, to bring in everyone who bought Apple common stock between November 2, 2018 and January 2, 2019, the report said, adding that the plaintiff is seeking a jury trial and unspecified damages.

Apple in November said it had gone into the holiday season with its “strongest lineup of products and services ever,” according to the suit.

But in reality, the US trade war with China was hurting the iPhone sales and Apple and its CEO Tim Cook were aware of it in November, claimed the lawsuit which said that Apple disclosed the “true state” of its first quarter iPhone sales only in January.

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Apple CEO Tim Cook speaks during a data privacy conference at the European Parliament in Brussels. VOA

The suit alleged that Apple and Cook’s “materially false and misleading statements” in November propped up the company’s stock, “which continued to trade at artificially inflated prices”.

But in January, Apple lowered its revenue guidance for fiscal 2019 first quarter, which ended on December 29.

In a letter to investors, Cook said that the company now expects a revenue of approximately $84 billion, down from the $89 to $93 billion it had previously projected.

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Cook acknowledged that the revenue shortfall in its guidance was partly due to China’s trade tensions with the US. The slowdown in the Chinese economy also impacted its revenue, he said.

Apple’s disclosures in January caused its stock price to fall by more than $15 per share, or more than 9 percent, the suit claimed. (IANS)

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Apple to Substitute Watch Series 3 Repairs with Series 4: Report

Earlier this month, Apple confirmed that repairs of certain Apple Watch Series 2 models will be fulfilled with equivalent Series 3 models due to temporary shortages of unspecified Series 2 parts

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Apple is saying goodbye to "Time Travel" Pixabay

Running low on inventory for the older model, Apple has informed its retail staff to substitute some Apple Watch Series 3 repairs with the Series 4 globally, the media reported.

The company announced the change in an internal memo that was delivered to Apple Store repair staff and the iPhone maker’s Authorized Service Providers around the world, 9To5Mac reported on Monday.

As of now, Apple has not provided any details about how long would the Series 3 constraints and Series 4 upgrades scheme last.

The new repair and replacement upgrade for the Apple Watch is the latest of several instances of the company substituting Apple Watch repairs with newer models.

The iPhone-maker released its Apple Watch Series 3 with cellular connectivity built in 2017. The 38mm variant of the watch currently costs Rs 28,900, while the 42mm GPS variant is priced at Rs 31,900 in India.

Apple Watch
Apple watch series 4.

Launched last October, the price of Apple Watch Series 4 GPS is Rs 40,900 for the 40mm variant and Rs 43,900 for the 44mm version.

“As usual, it’s not guaranteed that all locations will acknowledge existence of this internal policy, especially given that there is no definitive end date, so your mileage may vary,” the report said.

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In January, the company announced that some first-generation Apple Watches and Apple Watch Series 1 could qualify for Series 2 replacements, due to supply constraints on repair parts for the older models.

Earlier this month, Apple confirmed that repairs of certain Apple Watch Series 2 models will be fulfilled with equivalent Series 3 models due to temporary shortages of unspecified Series 2 parts, the report added. (IANS)