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The American multinational technology company will pay $9 million for misleading around 275 customers, according to the BBC.
The US company was accused of ignoring customers rights in repairing and replacing their devices.
The Federal Court of Australia found those actions breached consumer law.
The problem took place when customers downloaded a software update, and Apple refused to repair the devices, claiming that they had been previously fixed by a third party, according to the Australian Competition and Consumer Commission (ACCC).
"The court declared the mere fact that an iPhone or iPad had been repaired by someone other than Apple did not, and could not, result in the consumer guarantees ceasing to apply," Commissioner Sarah Court commented on Tuesday.
Apple had contacted up to 5,000 users to compensate them for the error.
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