Tech

Apple agrees to pay iPhone owners $250 million for not delivering AI Siri

Apple’s $250 million settlement over vaporware AI exposes how its "Apple Intelligence" rollout became a bait-and-switch, leaving iPhone 15 Pro and 16 buyers with Siri’s stagnant NLP stack instead of the promised on-device LLMs. The payout—scaled from $25 to $95 per device—underscores the legal risk of pre-announcing speculative features tied to hardware sales cycles.

Apple has agreed to pay $250 million to settle a class action lawsuit alleging it misled customers about the availability of Apple Intelligence features on the iPhone 15 Pro and iPhone 16 models. The settlement covers U.S. customers who purchased any model of the iPhone 16 or iPhone 15 Pro between June 10, 2024, and March 29, 2025. Eligible claimants can receive $25 per device, with potential adjustments based on claim volume and other factors, up to $95 per device, according to the Clarkson Law Firm, which filed the lawsuit [The Verge].

Overview

The lawsuit, filed in 2025, argued that Apple created a "clear and reasonable consumer expectation" that Apple Intelligence features—such as a more personalized Siri powered by on-device large language models—would be available at launch. Instead, the iPhone 16 was released in September 2024 labeled as "built for Apple Intelligence," but shipped without most of the AI capabilities demonstrated at the June 2024 Worldwide Developers Conference. Key features like advanced Siri functionality were delayed, while others, including Image Playground, Genmoji, and ChatGPT integration in Siri, were rolled out gradually over the following months.

Apple denied any wrongdoing but opted to settle to avoid prolonged litigation. In a statement, the company said it has since introduced "dozens of features" across its platforms, including Visual Intelligence, Live Translation, Writing Tools, Clean Up, and Genmoji, all with privacy protections. However, the delayed rollout of core AI functionality—particularly the promised on-device LLMs for Siri—formed the basis of the legal challenge.

What the settlement covers

The settlement resolves claims related to two specific features whose availability was misrepresented: the advanced, personalized Siri and broader Apple Intelligence capabilities marketed as immediately functional. In April 2025, the National Advertising Division recommended Apple discontinue or modify its "available now" claims on the Apple Intelligence webpage. Apple subsequently removed an advertisement featuring actor Bella Ramsey using the upgraded Siri.

Affected users must submit a claim to receive compensation. The base amount is $25 per eligible device, though the final payout may vary between $25 and $95 depending on the number of claims and other administrative factors. The settlement does not require Apple to admit fault or change its marketing practices, but it highlights the legal risks of tying speculative software features to hardware releases.

Tradeoffs

The case underscores a growing tension in the tech industry between aggressive AI feature previews and actual delivery timelines. By branding the iPhone 16 as "built for Apple Intelligence" before the software

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