Wired Magazine reports the settlement is related to a class action lawsuit accusing the Cupertino company of failing to honor warranties on several products including iPhones and iPods. The magazine says the settlement is expected to be filed in court in San Francisco and needs approval from a judge.
Apple is admitting no wrongdoing in the settlement. Individual payments to customers could top as much as $200 each.
Various lawsuits have accused Apple of declining to honor warranties if a white tape inside its products turned pink or red indicating contact with water. Bu the tape's maker says humidity and not water could have caused the color to change.