Sony sees $ 560 million losses from burnt batteries and PS3 discounts
If there’s anything Sony doesn’t want to remember in the history of its notebook battery production, it’s this year’s outburst of some really bad news: A Dell notebook with a Sony battery caught fire in Japan.
Lately, it’s not only Fujitsu that has announced global recall for Sony’s batteries. Lenovo/IBM has joined the ranks of Dell, Apple, and Toshiba. As we know, three airlines have already put a restriction against laptops being brought in the airports and planes as a result of another Lenovo ThinkPad bursting into flames at a Los Angeles airport just last week. And yes, it’s because of Sony batteries.
A quick estimate of Sony’s losses will amount to US$ 560 million, out of its expected US$ 1.1 billion profits in half this year. That’s US$ 340 million for a global recall of some 10 million lithium ion notebook PC batteries and US$ 220 million worth of price slash for the PS3. Unfortunately, the figure could rise further if the PC vendors or consumers take legal action against Sony. So put two and two together, and we’re watching 560 million of ’em greenbacks slowly burn to ashes.
Last week, Sony has already planned to consult with OEM customers for their own battery recall. If your battery is a Sony that hasn’t already been exchanged, it’s best to watch out for news from your notebook manufacturer.
Via vnunet
If there’s anything Sony doesn’t want to remember in the history of its notebook battery production, it’s this year’s outburst of some really bad news: A Dell notebook with a Sony battery caught fire in Japan.
Lately, it’s not only Fujitsu that has announced global recall for Sony’s batteries. Lenovo/IBM has joined the ranks of Dell, Apple, and Toshiba. As we know, three airlines have already put a restriction against laptops being brought in the airports and planes as a result of another Lenovo ThinkPad bursting into flames at a Los Angeles airport just last week. And yes, it’s because of Sony batteries.
A quick estimate of Sony’s losses will amount to US$ 560 million, out of its expected US$ 1.1 billion profits in half this year. That’s US$ 340 million for a global recall of some 10 million lithium ion notebook PC batteries and US$ 220 million worth of price slash for the PS3. Unfortunately, the figure could rise further if the PC vendors or consumers take legal action against Sony. So put two and two together, and we’re watching 560 million of ’em greenbacks slowly burn to ashes.
Last week, Sony has already planned to consult with OEM customers for their own battery recall. If your battery is a Sony that hasn’t already been exchanged, it’s best to watch out for news from your notebook manufacturer.
Via vnunet
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