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Sony on the verge of recalling 300,000 of its notebook batteries according to Japanese publication

While manufacturers like Dell, Lenovo, Apple, Toshiba, Matsushita/Panasonic,  Fujitsu and Sharp have recalled millions of Sony-manufactured batteries, Sony's own notebooks computers were seemingly unaffected by the problems. Well, that all changed yesterday when the Nihon Keizai Shimbun reported that Sony will recall as many as 300,000 of its own batteries used in notebooks PCs.

Sony has not mentioned which notebook product lines would be affected by the recall, but the news sends the current tally of recalled units over the 8 million mark. With Sony on the verge of having a recall of its own on its hands, Hewlett-Packard may be reconsidering its position on recalling batteries. The company has previously stated that none of its products would be affected by the recall.

Sony’s battery problems are affecting the whole industry as reported by DailyTech yesterday Analysts say that the recall has caused a global shortage of batteries sending prices skyward by 15%. The cost of the recall is sure to climb as well. Sony as of now has $251 million USD budgeted for the recall, but those estimates may have to be revised to take into account a few million new recalled units.

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RE: Hmm
By Master Kenobi on 10/17/2006 10:17:38 AM , Rating: 2
Doublecheck your math my friend, its actually at 8 Million now.

RE: Hmm
By Spivonious on 10/17/2006 10:38:32 AM , Rating: 2
Well that supports me even more then :) $120,000,000 down the drain.

RE: Hmm
By Master Kenobi on 10/17/2006 11:28:29 AM , Rating: 2
See if you can add the cost to replace each battery into your margin........ Now THAT would be a figure :D

RE: Hmm
By Spivonious on 10/17/2006 1:42:50 PM , Rating: 2

Okay let's see...extra battery from Dell costs about $100, let's say there's a 30% markup, so it cost Dell $77. It's probably less than that but whatever.

Sony needs a profit too, so let's say it costs Sony $50 to make a battery and ship it out.

$15 to get a destroy the old one + $50 to make and ship a new one = $65/battery replaced.

8 million batteries * $65/battery = $585 million.

Judging by the price of standalone blu-ray players, the PS3 probablt costs $500-$600 for Sony to make. So the retailers probably get it for $490-$590...that's $10 lost on every system (this is probably a very low estimate). 500,000 systems on launch day = $5 million lost. R&D costs for PS3 are probably at least $100 million.

Okay let's total this up:

batteries: $585,000,000
ps3: $105,000,000
total: $690,000,000

That's a lot of costs to absorb. I'll be surprised if Sony is still in business in two years.

RE: Hmm
By daftrok on 10/17/2006 3:33:54 PM , Rating: 1
That number can be at 1 billion dollars for all that matters and Sony will still be alive, because in the US Sony may not be number one but in S.E. Asia Sony is the shit, and always will be. Trust me, it'll be around after two years.

RE: Hmm
By Master Kenobi on 10/17/2006 3:43:29 PM , Rating: 2
Actually the PS3 has a rough manufacturing cost of 800 dollars.

The Blu-Ray players they are gouging so people buy the PS3.

RE: Hmm
By metalqga on 10/18/2006 8:18:50 AM , Rating: 2
I'll be surprised if Sony is still in business in two years.

When they start selling those batteries to the military you'll be talking differently.
There is no tank tough enough to withstand their power. :)

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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