Apple Cash Pile: At this point, most people are aware of the fact that Apple Inc. (NASDAQ:AAPL) is sitting on a pile of cash. You can get a better idea about past discussions, concerning Apple’s cash, by checking out this article.
While nobody knows for sure what Apple Inc. (NASDAQ:AAPL) plans to do with the cash, it is safe to say that they need to set aside $53 million in the near future.
According to a report by the USA Today, “Apple is agreeing to a $53 million settlement in a class action suit charging the company failed to honor warranties on iPhones and iPod Touches.”
This may not be the end of the world for a company such as Apple, one that has so much money in the bank, but it is definitely worth discussing. After all, $53 million is a lot of money no matter what company you are talking about – even one of the most valuable in the world.
Per the agreement, the company will provide cash payments to hundreds of thousands of customers who agree that Apple Inc. (NASDAQ:AAPL) was not willing to repair or replace their device under the terms of their warranty.
Wired has more information on this story, and here is a brief excerpt on how things are going to progress at this point:
“The settlement, set to be filed in a San Francisco federal court in the coming weeks, provides cash payouts to potentially hundreds of thousands of iPhone and iPod Touch consumers who found Apple unwilling to repair or replace their faulty phones under Apple’s one-year standard, or a two-year extended, warranty. Apple chief litigation counsel Noreen Krall signed the agreement Wednesday. Apple admits no wrongdoing in the settlement, which needs a judge’s approval.”
As you can see, Apple Inc. (NASDAQ:AAPL) is willing to pay the money but is not willing to admit that it did anything wrong.
If you want to read the settlement in its entirety, you can do so by visiting this PDF courtesy of Wired.
At this point, you probably have one more question on your mind: how much are the payouts going to be per person? The Wired report says that “payouts are around $200 and could be less or double based on the number of claims submitted.”
Apple Inc. (NASDAQ:AAPL) may have the money to pay a settlement like this, but it goes without saying that it would rather not. Share your thoughts on this story in the comment section below.
Check back here for more updates on Apple Cash Pile.
DISCLOSURE: I have no positions in any stock mentioned.
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