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Apple Agrees to Pay $250 Million Settlement to iPhone 16, iPhone 15 Pro Owners Over AI Claims

Apple Agrees to Pay $250 Million Settlement to iPhone 16, iPhone 15 Pro Owners Over AI Claims

Apple will reportedly pay up to $95 (about Rs. 9,000) per eligible consumer as compensation, subject to the approval of the district court judge.

Written by Dhruv Raghav, Edited by David Delima | Updated: 6 May 2026 15:20 IST

Apple Agrees to Pay $250 Million Settlement to iPhone 16, iPhone 15 Pro Owners Over AI Claims

iPhone 16 Pro Max was launched globally in September 2024

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Highlights

iPhone 16 series owners could be eligible to receive compensation
iPhone 16 series was the first lineup to ship with Apple Intelligence
Apple has yet to reportedly settle other lawsuits

Apple launched the iPhone 16 series in September 2024 with the Cupertino-based tech giant's first smartphones to ship with its “Apple Intelligence” suite of tools, a term used by the company instead of artificial intelligence (AI). The tech giant also announced that the 2023-launched iPhone 15 Pro series will also get support for its new AI-powered functionalities. However, last year, a number of class action lawsuits by iPhone owners were reportedly filed against Apple for over-committing and under-delivering on its AI promise. Now, the company has reportedly reached an agreement to pay compensation to millions of affected consumers.

Apple Reaches Settlement in Class Action Lawsuit

According to fresh court filings seen by The New York Times, Apple has reached a settlement in a class action lawsuit, agreeing to pay $250 million (about Rs. 2,367 crore) in compensation to a select group of iPhone owners in the US, who claimed that the tech giant misled them about their handset's AI capabilities. The Tim Cook-led company could reportedly pay up to $95 (about Rs. 9,000) per consumer.

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Owners of iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max, along with owners of iPhone 15 Pro and iPhone 15 Pro Max, who bought their handset between June 2024 and March 2025, will be eligible to receive compensation from Apple.

Apple’s 20th Anniversary iPhone Could Launch With These Noteworthy Changes

The lawsuits against the tech giant were filed last year and were later consolidated into a class action lawsuit by the US District Court for the Northern District of California, the report added.

While a settlement has been reached between the plaintiffs and Apple, it reportedly only resolves a “handful” of the lawsuits. Moreover, the agreement is currently between the consumers and Apple, and a district court judge has yet to reportedly approve the same.

Introduced first during the WWDC 2024, most of the AI features remain elusive for several months, while a revamped version of the company's Siri AI-powered voice assistant isn't expected to arrive until later this year. After seemingly falling behind in the AI race, Apple started relying on other companies to offer AI-powered features on the latest iPhone models. Currently, its smartphones redirect users to OpenAI's ChatGPT for complex queries.

On January 13, the company announced that it had entered a multi-year deal with Google to bring the Mountain View-based tech giant's Gemini AI models and cloud technology to power Apple's future foundation AI models.

iPhone 16

KEY SPECS
NEWS

Display 6.10-inch

Processor Apple A18

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel

RAM 8GB

Storage 128GB, 256GB, 512GB

OS iOS 18

Resolution 1179x2556 pixels

More Apple mobiles Apple mobiles price in India

iPhone 16 Plus

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Stunning display
Solid build quality and lovely colour options
Battery life is bonkers on this one
Excellent for gaming and performance (in general)
Improved cameras

Bad
Still offers a 60Hz refresh rate and misses out on AOD (always-on display)
No fast charging
Comes with USB 2
No Apple Intelligence features out of the box

Read detailed Apple iPhone 16 Plus review

Display 6.70-inch

Processor Apple A18

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel

RAM 8GB

Storage 128GB, 256GB, 512GB

OS iOS 18

Resolution 1290x2796 pixels

More Apple mobiles Apple mobiles price in India

iPhone 16 Pro

KEY SPECS
NEWS

Display 6.30-inch

Processor Apple A18 Pro

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel + 48-megapixel

RAM 8GB

Storage 128GB, 256GB, 512GB, 1TB

OS iOS 18

Resolution 1206x2622 pixels

More Apple mobiles Apple mobiles price in India

iPhone 16 Pro Max

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Massive screen size
Brilliant display
Performance beast
Camera Control is a boon
Fantastic battery life

Bad
Big phone for one-hand use
Expensive
No Apple Intelligence at launch
Slow-wired charging support

Read detailed Apple iPhone 16 Pro Max review

Display 6.90-inch

Processor Apple A18 Pro

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel + 48-megapixel

RAM 8GB

Storage 256GB, 512GB, 1TB

OS iOS 18

Resolution 1320x2868 pixels

More Apple mobiles Apple mobiles price in India

Apple iPhone 15 Pro

KEY SPECS
NEWS

Display 6.10-inch

Processor Apple A17 Pro

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel + 12-megapixel

RAM 8GB

Storage 128GB, 256GB, 512GB, 1TB

OS iOS 17

Resolution 1179x2556 pixels

More Apple mobiles Apple mobiles price in India

Apple iPhone 15 Pro Max

REVIEW
KEY SPECS
NEWS

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Excellent display
USB Type-C
AAA gaming
Excellent all-round performance
Good primary and telephoto camera
Customisable Action Button

Bad
Gets hot quickly when stressed
Slow wired charging
Expensive

Read detailed Apple iPhone 15 Pro Max review

Display 6.70-inch

Processor Apple A17 Pro

Front Camera 12-megapixel

Rear Camera 48-megapixel + 12-megapixel + 12-megapixel

RAM 8GB

Storage 256GB, 512GB, 1TB

OS iOS 17

Resolution 1290x2796 pixels

More Apple mobiles Apple mobiles price in India

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Further reading: Apple Intelligence, Apple, iPhone 16, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, iPhone 15 Pro Max, AI

Dhruv Raghav

Email Dhruv Raghav

Dhruv Raghav is currently working as a Senior Sub Editor at Gadgets360. He has previously covered the North American financial markets as a Headline News Correspondent for a major news agency. After taking a sabbatical to prepare for the Civil Services examination, he returned to journalism to cover tech policy, with a special focus on AI laws and online gaming regulation. Now, he is back in Gadgets360 to write features and edit stories. To unwind, he likes to spend time with his PS5, listening ...More