Picture this: you’re having a private chat with a friend, and a few hours later, you start seeing ads related to your conversation. Concerning, right? That’s essentially the key allegation in the lawsuit against Apple (AAPL), which is now ending in a $95 million settlement.
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At the center of it all is Siri, Apple’s voice assistant. The lawsuit claimed that Siri was accidentally turning on – even when users hadn’t said “Hey Siri” – and recording personal conversations without consent. Even more troubling, some of those recordings allegedly made their way to third-party contractors and may have been used for more than just improving voice recognition.
Apple Denies Allegations
Apple strongly denies any wrongdoing. According to the company, it never used Siri recordings for ads or sold the data. Instead, it says the audio was only used to improve Siri’s performance. Plus, Apple stopped sending recordings to outside contractors back in 2019. Still, settling for $95 million—while not an admission of guilt—raises questions about how airtight Apple’s privacy practices really are.
This news comes at a particularly sensitive time for Apple. The company is already facing backlash over its struggles with AI. Its much-hyped “Apple Intelligence” features have reportedly been delayed and underwhelming, with some employees even calling the internal progress “ugly and embarrassing.” Now, add a privacy controversy to the mix, and it only reinforces doubts about whether Apple is truly leading in tech or just playing catch-up.
On top of that, Apple is also feeling the heat from the U.S.-China trade war. With tariffs on Chinese imports potentially soaring to 145% and most iPhones still made in China, Apple’s supply chain is under real pressure. The company may even need to raise U.S. iPhone prices to stay profitable. In this tense climate, a privacy scandal is the last thing it needed.
It’s More About Reputation Than Anything Else
Sure, $95 million isn’t going to break Apple’s bank. But reputationally, it’s a bigger blow. Apple has built its brand on being the “privacy-first” tech company. Now, many users are wondering if that promise still holds up.
If you owned an Apple device between 2014 and 2024 and think Siri overheard something she shouldn’t have, you might be eligible for up to $100. Claims are open until July 2, 2025 – so if this hits home, don’t wait.
Is Apple a Buy, Sell, or Hold?
Turning to Wall Street analysts, Apple sports a Moderate Buy rating, with an average AAPL stock price target at $228.65. This implies a 15.17% upside potential.
