Dell battery recall could cost Sony big-time

Dell battery recall could cost Sony big-time

World’s largest maker of personal computers Dell has just issued a massive recall of around 4.1 million notebook computer batteries.

These batteries were manufactured by Japanese tech company Sony and it might cost them a lot of money as per information available.

Market analysts believe that this recall could cost Sony anywhere from 10 billion yen to 50 billion yen.

Eiichi Katayama, an analyst at Nomura Securities Co. Ltd. said: “As the batteries were made by Sony, the possible impact of the news on Sony’s earnings is a concern. Until management discloses details of the cause, the risk of a larger impact remains.”

Sony has responded by saying that they are still assessing the possible financial impact of the recall.

In other news, the U.S. consumer safety officials have now said that they are reviewing all Sony-made lithium-ion batteries in laptop computers for fire hazards. The company also supplies these batteries to other PC manufacturers including HP, Apple Computers and Lenovo.