August 24, 2006

Sony puts price on battery problems

Multimillion dollar replacement costs may have effect on company's financials

Sony Corp. has provided for the first time an estimate of what the recalls of its battery packs by PC makers could end up costing the Japanese company.

On Wednesday Apple Computer Inc. said it will join Dell Inc. in recalling the Sony-made battery packs in some of its products because of a risk that they will overheat and catch fire while being charged. Apple is recalling about 1.8 million batteries, while Dell is asking customers to return 4.1 million batteries.

Sony expects the Apple and Dell recalls to cost between ¥20 billion and ¥30 billion (US$172 million to $258 million). It said the figure represents the cost of replacement battery packs and any other related costs.

That could put a dent in Sony's full-year financial results. The company currently forecasts both its operating profit and its net profit to be ¥130 billion for the fiscal year ending March 31, 2007.

Sony said it anticipates "no further recalls of battery packs using these particular battery cells."

Close

On Twitter now

Hardware

Powered by Twitter

On Twitter now

additional resources
White Paper - How to Improve Delivery of Advanced Web Applications

White Paper

Virtual Workforce: The Key to Expanding The Business While Cutting Costs

Get the independent advice and expertise you need to support a virtual workforce.

Go inside:
The three-step approach to making a virtual workforce a reality.
The four flavors of client virtualization technologies.
The three key initiatives that solve IT challenges.
Download now »
White Paper: Successfully Secure Your Wireless LAN With Wi-Fi firewalls.

White Paper

Addressing Linux Threats Leveraging Fewer Resources

The increase in Linux popularity has increased the frequency and sophistication of malware attacks. Read this 2 page white paper now to learn how you can protect your Linux environment with real-time protection that is certified by all major Linux vendors.

Download now »
White Paper - The 2009 Handbook of Application Delivery

White Paper

The 2009 Handbook of Application Delivery

Ensuring acceptable application delivery will become even more difficult over the next few years. As a result, IT organizations need to ensure that the approach that they take to resolving the current application delivery challenges can scale to support the emerging challenges. This handbook elaborates on the key tasks associated with planning, optimization, management and control and provides decision criteria to help IT organizations choose appropriate solutions.

Download now »
White Paper - Is Your Backup System Outdated?

White Paper

Mid-range Storage Considerations

A common misconception is that mid-range storage requirements are dramatically different than that of a larger enterprise. Mid-range storage users may require less capacity, but they have similar functionality and management requirements. This ESG paper examines mid-range storage needs and reviews a new solution that adjusts size while retaining value, performance and functionality.

Download now »

Sign up to receive Hardware Resource Alerts

Subscribe to the Today's Headlines: First Look Newsletter

Find out what will be news for the day, with our first-thing-in-the-morning briefing.

©1994-2010 Infoworld, Inc.