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Dell Recall Expensive to Sony
Dave Magliano 8/15/2006, 10:11pm Eastern Time

It may be Dell that's recalling a record 4.1 million notebook computers, but it's Sony's batteries that are causing the problems. Those problems may cost the two companies a combined US$400 million.

The three notebook computers included in the recall-- the Inspiron, Latitude and Dell Precision sold from April 2004 to July 2006-- used defective, Sony-manufactured lithium-ion batteries. Recently, consumers have issued complaints to Dell that the batteries are overheating, causing them to catch fire.

Sony may evenly split the costs of the recall with Dell, analyst Roger Kay told The Associated Press. He estimates that total costs of the recall will reach US$200 million based on battery and shipping costs. Other analysts predict total costs as high as US$400 million. The recall is the largest in consumer-electronics history.

Nintendo has used lithium-ion batteries for years, beginning with its Game Boy Advance SP and continuing with DS and DS Lite. Sony also uses lithium-ion batteries in its PlayStation Portable, but the overheating is thought to be confined to the three Dell notebooks.

The battery technology itself, first made commercially available by Sony in 1991, is believed to be safe, as experts say this situation is from a production flaw that only affected the recalled products. Some other companies that use Sony-made batteries, however, are monitoring their own products for similar problems.

Source: International Herald Tribune, Associated Press



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