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Sony will continue as battery supplier even though it made batteries that could overheat and catch fire : Dell
Dell Inc. said Monday it will recall 4.1 million notebook computer batteries because they could overheat and catch fire, in the biggest recall in its 22-year history.
The world's largest personal computer maker blamed the voluntary recall on lithium-ion batteries made by Sony Corp., which Dell (Charts) said could in rare cases produce smoke and catch fire.
Dell, which expected no financial impact from the recall, said it would keep Sony (Charts) as a supplier of notebook batteries.
"We have confidence that they have taken the right countermeasures and the process is now secure. We expect that Sony will continue to be a good supplier of batteries for us," Chairman Michael Dell told reporters in Singapore.
The batteries are also used by other computer makers, including Apple Computer Inc. (Charts), which said it was looking into the issue. Hewlett-Packard Co. (Charts) said its notebooks were not affected by the Dell recall, which was issued with the U.S. Consumer Product Safety Commission.
No injuries have been tied to the defect involving the Dell-branded batteries, Dell said. The company has received six reports of batteries overheating, causing damage to furniture and personal belongings, the safety commission said.
Dell spokesman Jess Blackburn said a battery of the type involved the recall was in a Dell laptop that erupted in flames in Osaka, Japan, recently. The incident was captured in photographs sent across the Internet.
About 2.7 million of the recalled notebooks are in the United States, Blackburn said.
Rick Clancy, a spokesman for Sony Electronics Inc. in the United States, said the financial impact of the recall on Sony "is still not fully determined" and partly depends on how many people participate in the recall.
Shares of Dell were down in extended trading and HP shares rose less than 1 percent.
Masahiro Ono, a Tokyo-based analyst for Morgan Stanley, said Sony would have to at least bear part of the recall cost, but he expected the cost would be limited because only six cases had been reported and the recall rate would likely be fairly low.
TECHNOLOGY ARTICLES
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