rochel1977
08-14-2007, 09:54 PM
Nokia, the world's largest manufacturer of mobile phones, has said it will replace on request up to 46m phone batteries after a number of customers found that their phones overheated while charging.
The Finnish company, which is known for the reliability of its products, said that the problem stemmed from one type of battery - produced by Japanese company Matsushita - which had short-circuited while charging in around 100 instances.
Nokia stressed that "no serious injuries or property damage have been reported" in relation to the flaw but added: "While the occurrences in the BL-5C batteries produced by Matsushita in the time-period specified are very rare, concerned consumers can request a replacement for any BL-5C battery subject to this product advisory."
Nokia has pledged to replace all these batteries upon request in what could be the biggest ever recall of a consumer electronic device.
Per Lindberg, an analyst at Dresdner Kleinwort, estimated that the recall could cost around €500m (£340m) although he said it was not yet clear if Nokia would have to absorb this hit itself.
A Matsushita spokesman told Bloomberg that the company will discuss replacement costs with Nokia.
Mr Lindberg commented: "No company in consumer electronics is immune to the vagaries of quality deficiencies. None. Not even Nokia.
"To launch 40-50 new models per year and ramp production to tens of millions of each without any hiccups is far beyond the norm."
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/14/bcnokia114.xml
The Finnish company, which is known for the reliability of its products, said that the problem stemmed from one type of battery - produced by Japanese company Matsushita - which had short-circuited while charging in around 100 instances.
Nokia stressed that "no serious injuries or property damage have been reported" in relation to the flaw but added: "While the occurrences in the BL-5C batteries produced by Matsushita in the time-period specified are very rare, concerned consumers can request a replacement for any BL-5C battery subject to this product advisory."
Nokia has pledged to replace all these batteries upon request in what could be the biggest ever recall of a consumer electronic device.
Per Lindberg, an analyst at Dresdner Kleinwort, estimated that the recall could cost around €500m (£340m) although he said it was not yet clear if Nokia would have to absorb this hit itself.
A Matsushita spokesman told Bloomberg that the company will discuss replacement costs with Nokia.
Mr Lindberg commented: "No company in consumer electronics is immune to the vagaries of quality deficiencies. None. Not even Nokia.
"To launch 40-50 new models per year and ramp production to tens of millions of each without any hiccups is far beyond the norm."
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/14/bcnokia114.xml