After 50 class actions filed against Apple for slowing older iPhones through an iOS update and three senators demanding Apple respond to their letters on the matter, it was public that the Department of Justice and Securities and Exchange Commission have begun an investigation into the matter.
Apple has released its first affordable iPhone SE smartphone a couple of years ago, and there were rumors about the new edition of the Phone to be released sometime this year.
So far, the DOJ and SEC have requested information from Apple.
Apple shares were down 1.3 percent to $165.87 in early afternoon trading in NY.
Apple was previously investigated by the US Department of Justice in 2012 over the price of digital book downloads.
Apple continues to face criticism over its controversial decision to slow down older iPhones with aging batteries. The company faced a wave of backlash after word spread of the update. Now that it has become clear that a new battery can give life to an old phone, more customers may choose to delay an upgrade, especially with Apple cutting the price of a battery replacement to $29 from $79.
Numerous people suing Apple say that they would not have bought newer iPhones if they knew that they could fix the issues with their older models by simply replacing the battery.
iOS 11.3 is shaping up to be a major update from Apple, with the firm planning to release iMessages in iCloud and a new feature that sends your location to emergency services when you call them.
Apple employees were reportedly briefed about the plans by the company's software head Craig Federighi in a meeting earlier this month. If Apple thinks it can actually shift mainstream pricing in that direction, it absolutely will, but a sharper-than-expected decline in sales could be great news for everyone who doesn't want to see smartphones get more, not less, expensive.
The iPhone X is Apple's first phone with an OLED display, and the high price tag of the handset is largely resultant of the high cost of OLED panels, which are made exclusively by Samsung Electronics.
Apple says the reason for the software feature is to prevent unexpected iPhone shutdowns, not to encourage users to update to a newer iPhone.
The company's shares were down slightly in Tuesday trading- less than one percent - closing at $166.97 per share.