Apple to Pay Out $53 Million Over iPhone Water Damage Warranty Issues

Apple has agreed to pay out a weighty $53 million to settle a lawsuit which saw the company accused of not correctly honoring warranties of iPhone and iPod Touches, reports Wired.

The settlement should in theory see tens of thousands of Apple customers, previously refused repairs or replacement hardware under warranty, receive cash payouts. It's amusing to note, however, that Apple admits no wrongdoing in the settlement (see PDF below).

The case revolves around a white tape indicator, embedded in the iPhone and iPod Touch, which was used to measure the effects of water damage. If it turned pink or red—supposedly from the presence of water—Apple refused to repair the hardware. But the tape manufacturer, 3M, has said that humidity—not direct water exposure—could actually cause that change.

So, if you were refused warranty service over water exposure for a the original iPhone, iPhone 3G, iPhone 3GS, or a first-, second or third-generation iPod Touch, you could be in for a payout. The sums are expected to be in the region of $200. [Wired]

Apple Warranty Settlement