Apple has won the class action law suit which could have resulted in the Cupertino company paying $1 billion.
The jury took only three hours to rule in favor of Apple. Consumers and retailers were looking for compensation as they claimed Apple abused their dominant position in the digital music space as they ensured iTunes music could only be played on the iPod and they also blocked other services with ongoing updates which Apple has said all along were simply updates to improve the iPod.
The jury agreed and also dismissed claims that the Apple strategy resulted in inflated prices for the iPod.
Apple said the following in a statement:
“We created iPod and iTunes to give our customers the world’s best way to listen to music,” Cupertino, California-based Apple said after today’s verdict. “Every time we’ve updated those products — and every Apple product over the years — we’ve done it to make the user experience even better.”
The class action law suit which could cost Apple $1 billion started yesterday and emails from Steve Jobs were used as evidence to show that Apple apparently abused the marketing leading position they had in the digital music space.
Plaintiffs’ attorney Patrick Coughlin showed an email from 2003 in which Steve Jobs wrote “We need to make sure that when Music Match launches their store, they cannot use iPod”.
In another email from 2005, Steve Jobs simply said “We need to change things here” when he became aware of a Real Player introducing a program which would enable users to buy music anywhere and play them on the iPod.
The attorneys argue that by locking the iPod, Apple was able to charge an unfair high price and it also stopped users from considering music players from other brands when upgrading as they could not move their purchased music with them.
Today a long lasting class action law suit will actually start in court. Apple is being accused of abusing their market position during the iPod dominance when it comes to blocking competing devices and services as Apple made sure iTunes music could only be played on the iPod.
The group of individuals and resellers that are suing Apple, wanted to receive $350 million in compensation as they argue that by locking the iTunes music, the prices of the iPod was inflated. Apple chose not to settle, if they lose in court the amount the company has to pay will increase to over $1 billion.
Apple can look back at a record quarter mainly thanks to the iPhone 6. The company reported a net profit of $8.5 billion (+12.7%) and revenue increased 12.4% to $42.1 billion. The company said it sold 39.3 million iPhones during the quarter.
The big surprise however came in regards to Mac sales which increased 21% to 5.5 million units. That is impressive to say the least considering the slow PC market.
For the entire fiscal year Apple reported revenue of $182.8 billion and net profit of $39.5 billion.
Not everything was great though. iPad sales decreased 13% to 12.3 million units and Apple only sold 2.6 million iPods which is a 24% drop.
There is no stopping the Cupertino based company it seems. The holiday season has historically been the best quarter of the year and Apple is forecasting revenue between $63.5 and $66.5 billion.
Earlier this month Apple send out the below invitation for an event on October 16.
It is rumored that Apple will release a thinner iPad Air. The new tablet is going to a higher resolution and also enable split-screen-multitasking in iOS8. In order to manage that the iPad Air 2 is said to get a more powerful SoC – the A8X. This is in line with what Apple has done in the past, both the third and fourth generation came with a modified SoC marked with “X”.
It is also expected that Apple will release Retina iMacs and some people are interpreting the slogan “It’s been way too long.”, saying the next generation iPod will be revealed.
We will have to wait until later this week to see. Apple will once again stream the event on their website: http://www.apple.com/live