Battery Recalls May Cost Industry over $280 mln
The recall of Sony manufactured batteries for notebooks by major PC manufacturers could cost the PC industry over $280 million, one market research firm concludes.
Responding to reports of notebook computers bursting into flames, Dell issued a recall of batteries in August, with Apple following suit shortly thereafter. Sony stated that the problem was confined to those manufacturers only, however, last week Toshiba recalled 300 thousand further Sony made batteries.
In the worst-case scenario, Matthew Wilkings of iSuppli states, the battery recalls will cost he PC industry about $280 million.
The research firm notes that during a recall, it is typical not to receive back every defective device however. Unregistered consumers will be difficult to reach, and end-users may hold on to their parts for extended periods.
Taking these into account, the firm estimates that a more likely forecast will cost the PC industry $140 million. If more vendors are found to be within potential risk, however, the cost could exceed $280 million.
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