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DELL BATTERY RECALL
 


 

Dell recalls over 4 million notebook batteries

Sony Corp., which provided the lithium-ion batteries, to financially support the largest recall in consumer electronics industry.

BY A CORRESPONDENT
August 15, 2006

HOUSTON: Dell announced on Tuesday that the firm is recalling 4.1 million notebook computer batteries made by Sony Corp.

The world's largest Personal Computer maker said the reason for recalling the batteries was that they could overheat and catch fire.

Dell, based in Round Rock, said the recall of lithium-ion batteries was probably the largest ever in consumer electronic industry.

In 2004, a million lithium-ion batteries for Kyocera cellphones were recalled after similar complaints.

The recall is being made in cooperation with the US Consumer Product Safety Commission and other regulatory agencies around the globe, Dell said.

Dell said these batteries were sold or provided with the notebook computers as part of a service replacement and also as individual units in the period from April 1, 2004 to July 18, 2006.

The computers were priced between $500 and $2,850, while the batteries were priced between $60 and $180.

The PC maker claimed the recall would not have any impact on its results. Dell is to report second-quarter earnings in the current fiscal in three days.

Sony Energy Devices Corp., a unit of Sony, manufactured the batteries. Dell chairman Michael Dell said Dell would continue with Sony Corp. as its supplier of notebook batteries. Sony has confirmed that it was “financially supporting” Dell in the recall, a euphemism for cost sharing.

Most of the recalled batteries have been sold with Dell Latitude, Inspiron, XTS and Tprecision mobile workstation notebooks, Dell said. The firm would soon come out with a website giving details of the affected models and also directing consumers on the ways to get free replacement batteries.

Analysts say the issues relating to the recall were not confined to Dell. This could mean that other firms using Sony batteries may also have to take similar measures. Many major computer manufacturers depend on Sony for batteries.

Dell has already revealed plans to invest about $100 million for a marketing campaign to refurbish its image and enhance customer service following a slew of complaints regarding after-sales service. Dell is also hiring 2,000 personnel to spruce up its stable.

Sony’s lithium-ion batteries are being used by Apple Computer Inc. Apple is also reportedly studying the issue.

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