Apple is a technology international company that designs, develops, and sells electronics such as computers, software and also engages in online businesses. It is among the top 5 companies in the United States based in California. The company is best known to produce the best hardware products such as Macintosh computers, iPod, and iPhones. It owns several Apple software’s that include Mac OS X operating system, iTunes media browser, among others. It operates several retail stores across the world as well as the online store and the iTunes store (Del Giudice and Rigamonti, 5670). Despite enjoying a wide scale of business operation success, it has as well been hit with several scandals.
In the year 2017, Apple was hit by one of the biggest scandals known as “Batterygate.” It is described as the intentional slow down associated with Apple’s iPhones that reduced battery performance which prompted shutdown when exposed to high load circumstances. It began when one of the users noticed a battery reduction after performing a software update. The user went on to replace the battery and noted the issue got resolved. The user went ahead to report the issue, which received wide media coverage. The issue got the attention of many other Apple users, who suggested that the Apple Company was forcing them to upgrade to the latest versions. They claimed that the software update introduced by Apple was to force them to replace their batteries or as well upgrade by purchasing new devices. It was noted that a certain brand of Apple iPhones would shut down immediately they reached a 30% battery level (Del Giudice and Rigamonti, 5670). This happened immediately after Apple announces an upgrade to the new iOS update.
The incident ruined the reputation the company had created for years. By the time the scandal was happening, Apple had a reputation as the most valuable consumer brand in the whole world. The launch of iCloud increased customers’ security in storing their data and information. It was one of the best security features as it comprised of personal web pages, emails, groups, iDisk, Online backup (Ramachandran and Balasubramanian, 9967). iCloud is inbuilt in every Apple device on an online server that helps to maintain all devices connected on the web to be in sync.
Due to the growing concerns, Apple was forced to respond to the claims. In late 2016, Apple responded that it would carry out investigations over the matter. The investigations were complete, and it was reported that iPhone 6 and iPhone 6s were the two models affected as they encountered an unexpected shutdown. Both brands were operating on the iOS 10.2.1 software. Geek bench developers published a report that indicated battery reduction was caused by the software update. The report forced Apple to publicly admit that, indeed, it had added some performance controls to iOS, which was meant to maintain the system stability. The controls were added to the devices that had experienced battery degrading (Ramachandran and Balasubramanian, 9967). Apple conceded that it had never corrupted operating system performance to previously launched gadgets with the purpose of increasing the sales or encouraging the purchase of the latest models.
To maintain customer satisfaction and regain the trust of the consumers, Apple offered battery replacements for the affected devices at a discounted rate in the year 2018. The company was forced to change its iOS to provide healthier battery information and as well to act as a means to discontinue throttling. The company described the results as not a safety concern; instead, the action would decrease capacity, which will prompt shutdowns to protect other electronic components. Based on other shutdowns, Apple indicated that it would prioritize “additional diagnostics capability” in future updates. It would improve algorithms that would help in battery management and performance. With the release of iOS 10.2.1, Apple reported that it reduced shutdowns in both iPhone 6 and 6s to over 70% (Weiss-Blatt; “Big Tech – Big Scandals,” 40). It also noted that the defects were separate in the mentioned brands.
The Geek bench report indicated that Apple had intentionally reduced the performance of older iPhones to the latest versions in a move to encourage obsolescence to increase sales of the latest versions. The company issued a contrary statement that stated that the performance controls were initiated on older phones to improve customer experience. It would have encompassed an increase in the general performance as well as prolonging the life of the batteries (Weiss-Blatt “Big Tech – Big Scandals,” 40). Due to the unclear information, Apple was subjected to several lawsuits, which led to it being fined by the French government.
Apple managed to issue an official apology to the public. In the statement, it claims that it had believed the issues were caused by bugs in the iOS and normal performance decreases, which commonly happen during updates. It admitted that progressive chemical aging in the older iPhones was among the causes of unnecessary shutdowns in the devices. The solution the company provided for the issue was to replace the battery of the affected devices. It offered a discount on battery replacements on the two versions of the devices. The company promised improved battery information in the future developed software (Weiss-Blatt; “Tech Crisis Communication,” 76). The company issued a public statement that it would never reduce the life or reduce the performance of any Apple product to drive or increase sales.
Personally, the response by Apple was bad, and it did not reflect the companies’ policies. They lied to the public when they were fully aware of the process they were undergoing. They should have taken full responsibility for their actions, and instead of discounting the batteries, they should have made them free. The goodwill process would have reduced the suspicion from the clients that still think that the move to reduce the battery percentage was to increase the sales of the company. Consumers are the core of any business that should be given priority at all times. Any suspicion of a particular company product should be dealt with immediately, and at the same time, goodwill to be given to restore the trust. Apple’s lack of formidable goodwill resulted in the company’s cut in the projected earnings. There were very few phone upgrades as compared to what the company had anticipated. Several markets were affected, especially those of China, as they realized a very low revenue. Several lawsuits were filed against the company, which resulted in a fine of twenty-five million euros that was to be paid to the French consumers. In the United States, Apple settled to pay twenty-five US dollars to the residents that had purchased the various brands that include iPhone 6, 6 Plus, 6S, 6S Plus, 7 and 7 Plus devices (Zhang, 44). Through further investigations, Apple was forced to publish its documents publicly on how it plans to throttle the performance of the batteries.
In conclusion, Customers are an integral part of the business. Any move against them should be made with maximum precautions. All product development should be designed concerning the consumers. Companies should be responsible for conducting research on the needs of the customers, perform a test and trial before fully launching a new product in the market. If all procedures could be followed, Apple would have prevented the loss and as well loss of potential clients.
Works Cited
Del Giudice, Alfonso, and Silvia Rigamonti. “Does Audit Improve the Quality of ESG Scores? Evidence from Corporate Misconduct.” Sustainability, vol. 12, no. 14, 2020, p. 5670.
Ramachandran, Sunder, and Sreejith Balasubramanian. “Examining the Moderating Role of Brand Loyalty among Consumers of Technology Products.” Sustainability, vol. 12, no. 23, 2020, p. 9967.
Weiss-Blatt, Nirit. “Big Tech – Big Scandals.” The Techlash and Tech Crisis Communication, Emerald Publishing Limited, 2021, pp. 37–72.
“Tech Crisis Communication.” The Techlash and Tech Crisis Communication, Emerald Publishing Limited, 2021, pp. 73–95.
Zhang, Qian. “Research on Apple Inc’s Current Developing Conditions.” Open Journal of Business and Management, vol. 06, no. 01, 2018, pp. 39–46.