Sony faces an
unprecedented potential loss of more than $225m after notebook PC batteries it
supplied to Dell
apparently exploded or caught fire, industry sources have revealed to
vnunet.com.
Analysts have calculated that, in a worst case scenario under which Sony pays
to replace all 4.1 million batteries in the affected notebooks, the Japanese
company might lose more than $225m.
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Dell announced yesterday that it would repair or replace
4.1 million
notebook batteries that contain cells manufactured by Sony.
The computer maker warned customers to stop using the batteries immediately
because they could overheat or even start fires. The move follows a small number
of recent reports of notebook batteries bursting violently into flames.
Users of Dell Latitude, Inspiron and Precision notebooks are urged to visit a
special
Dell
Battery Recall website.
Based on the information available to date, analysts at
Nomura
Securities in Japan have speculated about the maximum potential cost to Sony
if the company is determined to be at fault.
"If Sony were to shoulder all costs related to the supply of replacements -
the worst scenario for Sony - we estimate that the cost would total around ¥26bn
[around $225m]," Nomura predicted in a private research briefing for its
investment banking clients.
The analysts stressed that this approximate figure is a "probable worst case
scenario", and is necessarily based on several assumptions about the average
battery costs due to limited information available from Dell and Sony.
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