Yes, your older iPhone is being slowed by Apple

The lithium batteries in iPhones are designed to last for 500 full charges which is meant to cover two years

After many years of speculation, Apple has finally admitted that it does deliberately slow down some old models of the iPhone to protect the devices' components. Yesterday afternoon, the company came clean and confirmed that it is throttling some older iPhones with degraded batteries. From there, they would likely go out and purchase a new iPhone to replace something that might have only required a battery change.

This admission should put the conspiracy theories to rest - Apple isn't up to anything sinister here - but a big question with implications for AAPL stock is now out there.

iPhones, like many recent Android devices, do not have batteries that can be easily replaced by users.

So there's good news and bad news for owners of old iPhones.

Testing of multiple generations of iPhone had previously debunked these rumors.

REUTERS/Jason ReedA new Rose Gold iPhone 7 Plus with dual cameras is shown in Australian's flagship Apple store in Sydney, September 16, 2016 as the iPhone 7 range goes on sale for the first time. When there was a new battery in play, no such issue was found.

Yes, your suspicions have been confirmed. The company included code in iOS 10.2.1 earlier this year that was a fix for iPhone 6 users experiencing sudden shutdowns. In order to do so, the update also sacrificed CPU performance or intentionally throttled the CPU to reduce random shutdowns.

The company said its software updates for the iPhone 6, iPhone 6S, iPhone SE and iPhone 7 are created to "smooth out" peak power demands, prevent these surprise shutdowns and ultimately prolong the lifespan of batteries. Geekbench reports that iOS 11.2.0 introduces similar throttling for low iPhone 7 low capacity batteries.

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There are some real implications for AAPL stock in this announcement.

We knew it all along. The fourth most popular reason was faster processing speed.

Apple has now clarified that as the batteries age, lithium-ion batteries used in its phones become less able to provide the top levels of electrical current needed.

We've always known that batteries wear down with time. "Why not just offer to replace the battery instead?"

"The phone shutting down by itself and having a shorter battery life are minor inconveniences by comparison".

All smartphone batteries degrade over time so it is not unusual for Apple to be slowing down the performance of its older phones to help prolong their battery life, according to experts.

That's a (multi) billion dollar question for AAPL stock, which remains tied to those yearly iPhone upgrades.

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