How much did ‘Locationgate’ cost Apple? Less than $1,000

Legal

Following the “Antennagate” scandal that cost Apple zero sales last year, a new “Locationgate” scandal took the media by storm earlier this year that ultimately cost Apple zero sales. It was discovered in late April that the iPhone and 3G-equipped iPads were secretly tracking and storing users’ locations. Apple issued a statement seven days later, claiming the culprit was a bug that would be addressed as soon as possible. Apple also said that it does not track its users or their locations. Some people tend to take things more personally than others — or perhaps they’re out for a quick buck — so lawsuits were inevitable. Thus far, just one single complaint related to Locationgate has resulted in a payout from Apple, and it was awarded to South Korean man Kim Hyung-suk this past May, Reuters reports. What was the damage? 1 million won, which translates to a whopping $945. Kim, a lawyer, said Apple sent the payment last month.

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45 Comments
  • http://www.flickr.com/photos/PACMan3000/ Paul A. Chapel

    I’m always amused that Apple Haters think their constant whining about Apple and insults directed against Apple users are having some kind of material affect on Apple, when the truth is, they’re probably giving Apple a lot of free publicity because the comments accompanying the articles about Apple are causing page views to shoot through the roof.

    • Anonymous

      ok so far 10:42am eastern time there are zero apple hating comments in this post and 2 android hating comments out of a total of 4 comments mine makes five. This kills me because even when there is no provocation apple fan boys still have to go there.

    • Anonymous

      Don’t worry, Apple’s taking care of themselves with their litgate-instead-of-innovate strategy. 

      Still waiting for that 4G phone Steve. A bigger screen would be nice too. Or NFC. Shouldn’t Apple be able to have all the industry firsts since they invented the consumer smartphone game?

      The “Apple Haters” are just disappointed and annoyed that people don’t demand more from Apple. If Apple makes everything perfectly, shouldn’t everything they give us be perfect too? 

      Copy-paste wasn’t impossible. Was the waiting that cool?

      So again, that LTE iPhone…

      • Anonymous

        Actually, when copy-and-paste did come out, it was the best implementation that I’ve used.

      • Anonymous

         It still is, plus more cross functional between apps than any other copy paste out there.  They aren’t always first, but they are the best at implementing things.  As far as the “they litigate instead of innovate” comment, way to use HTC’s whine about them, except they did innovate and HTC, Samsung etc., feel it’s ok to copy ripoff instead of innovate.  It’s pretty bad when you are taking whole form factors, you call that innovation?

      • Anonymous

        I actually agree with you, the implementation is hands down the best touch copy paste I’ve ever used, but there’s not a very good argument for why it was worth the wait. Copy paste has been in phones with click-wheels for a while and it worked. 

        (Again, Americans love pretending like the iPhone was the first smartphone or that it had all the features it had now when it came out.)

        The fact of the matter is, there are now 8 companies competing for who can create the best implementation of copy paste and everything else.

        There was a period were Apple was clearly beating everyone. They could drop the “thinnest phone” and keep that title for a year, even with competition. I consider that the innovation head start that Apple had. It’s going away. When the Evo 4G beat Apple to the punch with a front facing camera and 4G, IMO, it was the death knell for Apple’s dominance. Now tell me they’re still doing well, but remember the iPod? Apple had Windows like marketshare or at least mindshare in the smartphone market. People didn’t think and still think Android can’t win. But the fact that it is throws out the arguments supporting that opinion.

        They just don’t anymore. Everyone else is right about the >3.5″ screen. People actually like it, judging by the fact that they’re buying phones with larger screens. Apple is still not interested.

      • Anonymous

        @18core:disqus , since you’re not the person suing HTC (this is not your original thought), can you show me an HTC phone and maybe point out how they obviously copy an iPhone form factor and not the age old PDA form factor seen in things dating back the Palm V? 
        Like you shouldn’t need to look at any patents or anything, you should be able to generally explain it to me?  Or maybe use my favorite “iPhone knock off”… the Droid Charge….

      • Anonymous

        The Evo 4G did not beat the iphone to a front facing cam…the iphone did not install them just as they saw the Evo having it..that is silly. That said the SGS had a front facing cam before and even before that the International Touch Pro 2 had a front facing cam. (There might have been devices before that too but just giving some examples)
        As for why Apple is suing..its simple..Apple is bound to loose eventually and when they do it will be hard to recover. I am not being anti-Apple here..but 1 company cannot beat every tech company in the world. As long as manufacturers keep dishing out products Apple will loose out on the “quantity”/”price” game…

        By suing they wish to attempt to prolong the eventual outcome.

      • Anonymous

        Never said that, but things like a front facing camera should have been one of the things they were working on from the beginning. Apple didn’t feel any urgency to put in things, because they got cocky. They thought they could wait it out and have all the time in the world to launch one product a year.

        My point is more about Apple’s head start should have lasted longer, if they’re the true visionaries everyone says they are, but obviously they’re just one tech company. Their head start was because they had no competition not because they make the best products. As soon as players like HTC stepped in the game, they started to beat Apple to milestones, that Apple with it’s tons of cash and approach to locking down hardware supply sources couldn’t beat.

        This is not the iPod vs. Zune/iRiver/Creative and friends, this is an even battle that Apple got a head start to and didn’t maintain.

      • Anonymous

        I don’t think front facing camera is really a good example…carriers in USA opted out of the Front Facing camera all the time, The TP2, the SGS and other phones all had their front facing cameras removed at carriers request. The iphone did wifi only facetime due to carriers not wanting the video chat  bandwidth. Sprint said OK because of the 4G and Verizon followed suit on the Droid X. (even though they still removed it from the Fascinate)..It was just that kind of market.

        HTC was in the game a long time, they gave life to winmo and killed winmo..mostly due to buying budget hardware. I don’t blame them as back then they were a small company so it was harder to negotiate deals..but even today they still seem to skimp out on components here and there.

        Apple got a lot of traction from their ipod business, and by pressuring the carrier to give up monthly earnings they were able to bring the phone cost down to 200$ despite the high margin of profit they take for themselves.

        But again if Apple releases 1 product a year, the competition has a chance to release a product before Apple does and then improve upon it and release another one right after. Not to mention with large amount of manufacturers its not a matter of “if” but a matter of “when”. Hence why Apple is attempting to use litigation in their favor..the longer they can prolong it, the better it is for them.

    • Bullyboyb

      This is just the beginning. Paying out is a partial admission of guilt depending on the conditions and agreement of the payment opening up the floodgates for more lawsuits.
      ask the common man on the street who uses apple products if they are aware of the locationgate scandal most will say no. Most of my apple using friends don’t even know a thing about IOS 5 let alone what goes on in the tech world. They listen to what Jobs says and take it as gospel. Hence sales figures won’t be affected.

    • numetheus

      The population of BGR readers that comments is a small percent. Most people just read the site to get information. And most of the Apple market doesn’t even read sites like this. It is an overwhelming number of soccer moms and professionals that don’t care about computers and technology outside of using one to browse a web, write documents, and look up the next recipe. The general population are not tech geeks. If you took the commenters here as an overall indicator of what people really think in the market, Apple would be sitting last place where RIM is with BlackBerry. There are a lot of people whining here. But they are just a few drones that hate Apple just because others do.

  • http://twitter.com/taupecat Tracy Rotton

    Well, $945 plus the travel expenses to fly the Apple execs out to Washington to answer to Sen. Franken.  That had to be more than $1,000.

    • http://www.letstalktablets.com letstalktablets

      yeah good thing that’s USD and not euro dollars!!

  • Bringit

    I wonder how much CheapCrappyFragmentationGate has cost Android?

    • Tim242

      Not as much as crotch cricket gate has cost you.

      • Bringit

        Hey nice one douchebag!  You are almost as creative and original as your lover Papi.  Keep the hits rolling, super stuff!

  • Anonymous

    Was there really a ‘gate’ involved here? Really? 

  • Anonymous

    There is a real deficit of critical thinking at BGR.  So many dumb statements, faulty conclusions.

  • batman

    Apparently somebody doesnt know what  “opportunity cost” is, and that somebody wrote this article.

    • Anonymous

      Exactly

  • http://twitter.com/5murfette Mr Smurf

    Hey BGR, nice BS article, I know at least 3 people in my social circle that decided to go for samsung phones BECAUSE of the antenna issue in iphone4.. so there you go, it costed them AT LEAST 3 sales. ::coin sound::

    • http://www.facebook.com/applelover Tim Meesseman

      Then you need new friends that aren’t from the tinfoil hat crowd. Had they actually read the details about what was really happening (read: nothing), they’d be fine with the iPhone.

      My Spidey-sense tells me they would have gone with a Samsung phone anyway.

      • Anonymous

        My spidey sense is wondering if you know what you are talking about. If Im reading your comment correctly you seem to be assuming he is talking about the tracking issue. The antenna issue that he referenced  was a reception issue which would have nothing to do with tinfoil hat wearing paranoid people. I dont think they would be fine with dropping calls no matter how much they read on the situation. but hey what do I know.

      • Anonymous

        I think he was referring to the location-issue, as that’s what the article is about. Even so, with regards to the antennae issue, for the majority of people it wasn’t as big of an issue as the media made it out to be. I never had any problems unless I had really weak signal. 

        If it really was such a big deal, why do people keep buying it and not returning it?

      • http://twitter.com/5murfette Mr Smurf

        No Mr Meesseman, they had 2 options, samsung or apple device, both for 1 PLN price (+ contract), and upon calling me for an advice (I told them about reception issue), they decided & signed up for samsung devices, there you go.

        U mad?

  • Anonymous

    “Following the “Antennagate” scandal that cost Apple zero sales last year, a new “Locationgate” scandal took the media by storm earlier this year that ultimately cost Apple zero sales.”

    Have any data to back up that “cost Apple zero sales” claim…I’d love to see how you arrived at that conclusion.

    • Steve Jenkins

      Dont you pay any attention here….they got this info from a credible analyst ;) /S

  • Anonymous

    Typical Koreans. All scammers and shakedown artists. Samsung will be dead in two years  true story™©®

    • Bullyboyb

      Lol. You are very funny. With people like you who needs enemies?

    • Tim242

      What about typical Canadians?

      • Bringit

        No crotch or cum comments?  That’s a first for you and your lover Papi.  You must have copied this post from someone else, like Android copies from Apple.

    • iScrotum

      Scroat using his daddy’s 1st gen Ipad to troll on bgr. He’d watch porn on it instead but El Jobso says its a no no.  true story™©®

  • http://pulse.yahoo.com/_FCATSDDPJWT6ODZZNKHMWLLEYY Barry Morton

    I paid $32.67 for a XBOX 360 and my mom got a 17 inch Toshiba laptop for $94.83 being delivered to our house tomorrow by FedEX. I will never again pay expensive retail prices at stores. I even sold a 46 inch HDTV to my boss for $650 and it only cost me $52.78 to get. Here is the website we using to get all this stuff, LiveCent.com

  • marK

    “Antennagate scandal that cost Apple zero sales last year”

    *tap tap tap*

    Don’t mind me – but I held off on the iPhone 4 because I already knew from the 1g model how annoying it was to have to hold it a certain way….no freaking way I was buying a phone that was was worse off in that regards….

  • Djjjaa

    Antennagate cost them millions of protective cases.

  • Anonymous

    The first sentence is moronic. There is no way to no how many sales Apple lost. 

  • Anonymous

    What is really stupid about this article, is that the author to this day doesn’t realize what the location file was used for and what it actually contained. The so called ‘location file’ held the location of various wifi networks and cell tower locations to aid the gps in finding your location faster. (without this the gps would take around 3 minutes to actually ‘lock on.’) The location file was the same for everybody in your area… When you went to a new area, apple would download a new location file. If you were to take a look at a map of the location data, you would see that the locations given in the file are grouped into general boxes of data within which you probably live. 

    When apple put out their fix, it was merely a shrinking of the amount of data that they send to your phone so the file shrank but its purpose remained the same.

    There was no tracking system used by apple. Every phone with a GPS has a location file.

    Anything else is just pr or bad press.

  • Anonymous

    I have two friends who went with Android phones over the iPhone due to the Antenna. So I guess it’s did cost them more than zero sales.

    • BurleyShells

      reading is hard

      and your friends are as retarded as you

  • http://twitter.com/silva918 Antonio Silva

    Can you say “class action lawsuit”?

  • http://twitter.com/UrbanEnigma Yves

    Wait a minute, lawyers are free now?!

  • Piotr

    Me thinks you assume too much here…yes, they’ve only paid $1000, but now that the first lawsuit has been successful, you can expect a whole slew in Taiwan and elsewhere. Besides, you’re forgetting to count lawyer’s fees and other attendant costs that will follow.

  • Sapples

    It’s not surprising that many didn’t sue Apple, after all iFans tend to
    believe everything Steve Jobs tells them. If he says, he invented the
    telephone, they will literally seek to change history to make sure
    Alexander Graham Bell will never be credited again. He can say that the
    iPhone invented copy/paste, notification bars, icons, widgets, and they
    would not bat an eye, or would probably go on flaming wars online just
    to protect their dear St. Jobs. Apple is a cult, so it’s almost surprising that someone actually decided to sue.

  • Anonymous

    Android will rule the world in 2 years  true story™©®

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