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Dell recalls 4M+ notebook batteries - UK affected, too

by Bob Crabtree on 15 August 2006, 16:29

Tags: Dell (NASDAQ:DELL)

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The press release


PRESS RELEASE

Dell Announces Battery Recall

Instructions On Company's Web Site Tuesday at 1 A.M. Central Daylight Time

Round Rock, Texas, August 14, 2006 - In cooperation with the U. S. Consumer Product Safety Commission and other regulatory agencies worldwide, Dell is today announcing the voluntary recall of approximately 4.1 million Dell-branded lithium-ion batteries with cells manufactured by Sony. Under rare conditions, it is possible for these batteries to overheat, which could cause a risk of fire.

The recalled batteries were sold with the following Dell notebook computers:

* Dell LatitudeTM D410, D500, D505, D510, D520, D600, D610, D620, D800, D810;

* InspironTM 6000, 8500, 8600, 9100, 9200, 9300, 500m, 510m, 600m, 6400, E1505, 700m, 710m, 9400, E1705;

* Dell PrecisionTM M20, M60, M70 and M90 mobile workstations;

* XPSTM , XPS Gen2, XPS M170 and XPS M1710.

The batteries were also sold separately, including in response to service calls.

"Dell" and one of the following are printed on the batteries:

* "Made in Japan"

* "Made in China"

* "Battery Cell Made in Japan Assembled in China."

The identification number for each battery appears on a white sticker. Customers should have this number available when they contact Dell to determine if their battery is part of the recall.

Dell sold or provided these batteries with the notebook computers, as part of a service replacement, and as individual units from April 1, 2004, through July 18, 2006. The computers with these batteries sold for between $500 and $2,850 (US) and individual batteries sold for between $60 and $180 (US).

Customers should contact Dell to determine if their notebook computer battery is part of this recall.

Please visit the firm's Web site at http://www.dellbatteryprogram.com beginning at 1 a.m. Central Daylight Time Aug. 15 or call toll-free at 1-866-342-0011, Monday through Friday, 8 a.m. to 5 p.m. Central Time.

Customers may continue to use the notebook computers safely by turning the system off, ejecting the battery, and using the AC adapter and power cord to power the system until the replacement battery is received.

Customers can also write to: Dell Inc., Attn: Battery Recall, 9701 Metric Blvd., Austin, Texas 78758.

Dell does not expect this recall to have a material adverse effect on its results of operations, financial position or cash flows.


About Dell
Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No. 25 on the Fortune 500. Company revenue for the past four quarters was $56.7 billion. For more information, visit http://www.dell.com. To get Dell news direct, visit http://www.dell.com/RSS.


Special Note
Statements in this press release that relate to future results and events (including statements about Dell's anticipated financial results) are forward-looking statements based on Dell's current expectations. Actual results in future periods could differ materially from those projected in these forward-looking statements because of a number of risks and uncertainties, including: general economic, business and industry conditions; the level and intensity of competition in the technology industry and the pricing pressures that have resulted; local economic and labor conditions, political instability, unexpected regulatory changes, trade protection measures, tax laws and fluctuations in foreign currency exchange rates; the ability to accurately predict product, customer and geographic sales mix; the ability to timely and effectively manage periodic product transitions; reliance on third-party suppliers for product components, including dependence on several single-source supplier relationships; the ability to effectively manage operating costs; the failure to attract and retain qualified personnel; the level of demand for the products and services Dell offers; the ability to manage inventory levels to minimize excess inventory, declining inventory values and obsolescence; and the effect of armed hostilities, terrorism, natural disasters and public health issues on the economy generally, on the level of demand for Dell's products and services and on Dell's ability to manage its supply and delivery logistics in such an environment. Additional discussion of these and other factors affecting Dell's business and prospects is contained in Dell's periodic filings with the Securities and Exchange Commission.




HEXUS Forums :: 3 Comments

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Looks like another black mark on Sony face.
I remember seeing a few pics of one of these blowing up, pretty impressive, would do you some serious damage if it were in your lap.
Hans Voralberg
Looks like another black mark on Sony face.

Indeed but what Sony shareholders will be even more concerned about is the possible hit that the company's bottom line might take.

Will Sony have to cough up not just for the replacement batteries but for the process involved in their replacement?

If so, then the cost to the company is going to be pretty substantial.

Not sure what the per-unit cost might be but let's take a guess and say that it's, what, US$50 - though I could readily imagine it being more if Sony is liable for the mechanics of the replacments.

And then what if the same issues apply to other batteries that Sony has supplied and used in its own laptops?

How many million batteries might that involve?

Best case might be a total hit of US$250 million but the worse case could see this figure doubled, trebled, quadrupled or more. Hardly bears thinking about if you've got any financial interest in Sony.