Not too long ago Apple Computer, Inc. (NASDAQ: AAPL) announced a recall of Powerbook and iBook batteries. The laptops were fairly new, and the cost of replacing so many batteries had some pundits wondering if that would negatively hit Apple's stock price. The story spread throughout a number of news venues as indications of stormy waters ahead for Apple.
But the problem was with Sony-made battery packs. Apple's quality control just happened to be the first to pick up on the problem, and the first to suffer the bad news.
Now the issue is spreading throughout the laptop manufacturers. Today Lenovo announced that it was recalling 357,000 laptops batteries worldwide that posed a fire hazard to customers. These are batteries in both IBM/Lenovo Thinkpad and T series laptops sold between Feburary 2005 and September 2006.
Dell also recalled batteries at the same time as Apple did, with cost estimates for the exploding battery replacement swap being in the area of a quarter of a billion dollars. Toshiba is now also starting to exchange Sony batteries.
No doubt the greatest impact will be on Sony Corporation (NYSE: SNE) and its close relationship with these major computer manufacturers. Though Sony produces a massive product line, it will have to work hard to mend fences. And also hope that no one catches fires and sues them.
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Reader Comments (Page 1 of 1)
9-29-2006 @ 2:11PM
Bob Sammis said...
The absence of a recall from Gateway is woth pondering.
Either they do not use Sony batteries or they too have a problem that they do not wish to discuss because of the financial implications. Some choise.
9-29-2006 @ 2:23PM
kaz said...
It should be simple.
Any notebook manufacturer that has used sony batteries in the last 2 years should come out and say it, and offer a recall to their clients.
We are talking potentially about peoples lives here so the cost of replcement should not be an issue.
10-03-2006 @ 5:03PM
co said...
I am asking myself if after of this Sony will continue being the provider of the batteries to companies like Apple or Dell, Sony with it's explosive batteries make them to lose too much money...
10-04-2006 @ 11:09PM
Audrey Sundin said...
I have already paid almost 90.00 to Dell for a new battery, they certainly didn't acknowledge any problem, just took my money and sent battery. I have used very very little in fear it will happen again.