Apple fined over false 4G claims
The company's grand foray into 4G territory came with a hiccup, as the new iPad isn't compatible with Australia's 4G networks.
Now Apple (AAPL) is learning that lesson as it finds itself $2.25 million lighter after controversy erupted over claims of the new iPad's speeds.
Back in March, Apple finally joined the ranks of Google (GOOG), Samsung, and Motorola and released a tablet capable of 4G speeds. Supported on AT&T (T) and Verizon (VZ) in the States -- Sprint (S) still needed an LTE network rollout -- the iPad was hyped as Apple's fastest connected mobile device and a precursor to a 4G iPhone. One that AT&T hasn't falsely upgraded.
However, while some countries were celebrating the new whiz-bang speeds, folks in Australia were hot under the collar. Turns out, their new iPads couldn't access 4G networks.
Because of the prominent 4G branding of the new iPad, the Australian Competition and Consumer Commission (ACCC) levied charges against Apple, alleging that the purported speeds were misleading.
While Apple still defends the faster speeds of its new device, it has agreed to pay a $2.25 million penalty and contribute $300,000 toward the ACCC's legal costs.
So if the company hopes to avoid the business end of a didjeridoo later this year, here's hoping the iPhone 5 is compatible with Australia's 4G networks.
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The company has made at least 4 acquisitions in the space, and few people have paid any attention.
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