Fire risk makes Dell recall 4m batteries
Dell, the world's largest PC maker, has recalled 4.1 million notebook computer batteries over fears they could catch fire. The recall affects thousands of computer users in Hong Kong and on the mainland.
The largest electronics recall in history was announced on Monday after footage distributed on the internet appeared to show a Dell laptop bursting into flames. The recalled lithium-ion batteries were manufactured by Sony and came with Dell's Latitude, Inspiron and Precision models sold between April 2004 and July this year.
Bryan Ma, associate director at market- research firm International Data Corp (IDC), said Dell's commercial-sector customers on the mainland would be hard hit by the recall, since they make up 98 per cent of the company's mainland business.
Although no exact figures were available for the number of computers facing recall in Hong Kong and on the mainland, Dell last year sold 431,000 notebook PCs on the mainland and 37,500 in Hong Kong, according to IDC.
Dell said the notebooks affected made up about 19 per cent of the 22 million units shipped worldwide between April 2004 and last month.
Texas-based Dell is the No3 notebook supplier in Hong Kong, and No2 on the mainland.
New batteries will be supplied by Sony and other manufacturers.
'Assuming all the cost is born by Sony, the recall and replacement of 4.1 million batteries at approximately US$50 per unit would cost Sony US$205 million,' a Macquarie Research report said.
Mr Ma said the recall 'isn't helping the situation' for Dell on the mainland, its fastest-growing PC market where the firm is embroiled in lawsuits from consumers in Xiamen and Shanghai who claim they were sold under-specification machines.
But Judy Low, Dell Asia-Pacific spokeswoman, said the company 'sees no material impact' on its business in China from either the recall or the consumer lawsuits.
Are you affected?
Models recalled
Some Latitude, Inspiron (pictured), Precision and XPS notebooks, shipped between April 2004 and July 18 this year
More information
Go to dellbatteryprogram.com or call 3416 0966 in Hong Kong, 800 8580896 on the mainland
