Apple to pay $250M over missing Apple Intelligence Siri features

Selling a phone on features that don't exist yet just cost Apple a quarter of a billion dollars.

The Financial Times first reported that Apple has agreed to pay $250 million to settle a class action lawsuit over its Apple Intelligence marketing. The suit accused the company of misleading buyers about the readiness and rollout of its AI tools ahead of the iPhone 16 launch, particularly the heavily promised Siri overhaul.

Plaintiffs argued Apple built a clear expectation that advanced AI would land right alongside the hardware, when in reality buyers received a severely limited or missing experience.

Up to $95 back per device

The proposed deal applies to U.S. customers who bought any iPhone 16 model or an iPhone 15 Pro between June 10, 2024, and March 29, 2025.

According to Clarkson Law Firm, eligible claimants can expect a baseline payout of $25 per device. That figure could climb as high as $95, depending on how many people actually file claims.

Apple is not admitting any wrongdoing. Spokesperson Marni Goldberg told The Verge that settling allows the company to stay focused on delivering innovative products. In a formal statement, Apple stressed that it has already shipped dozens of AI tools, including Visual Intelligence, Writing Tools, and Genmoji, claiming the lawsuit only concerned two delayed capabilities.

Yet warning signs have been piling up. Last April, the National Advertising Division recommended Apple drop or alter its "available now" claims online. Apple also quietly pulled a promo ad featuring actor Bella Ramsey that showed off the missing Siri upgrades.

Siri's personalized overhaul is now slated for later this year, with a preview anticipated at Apple's June 8 developer conference. Reports suggest it could run on Google Gemini or allow users to pick between third-party LLMs.

Why it matters

This is the steepest penalty yet for the industry's habit of selling AI as vaporware.

For consumers, a $25 to $95 check is a nice consolation prize, but the real takeaway is legal leverage. Device makers have spent two years hiking flagship prices on the promise of generative software updates. This settlement shows that selling unfinished software as present-tense hardware value finally carries real financial risk.

For the tech sector, we think this will force marketing teams to hit the brakes. The entire smartphone upgrade cycle has leaned on flashy AI demos that arrive months late, if at all. With Apple taking a $250 million haircut, rivals will think twice before plastering unreleased AI roadmaps across prime-time launch events.

Settling right now is strategically smart for Apple, clearing the legal deck just before its June 8 developer conference kicks off. But the underlying issue remains unsolved: until that upgraded Siri actually ships and works as advertised, every subsequent AI announcement from Cupertino will be met with a lot more skepticism.