Print 33 comment(s) - last by shabodah.. on Dec 4 at 4:06 PM

Recalling 9.6 million batteries could have that effect on a company's bottom line

Those who have been following the news know that Sony has seen better days. Sony revealed to investors that net income for the year will decline 35 percent to 80 billion yen (US$675 million) from a year earlier, great short of the July forecast of 130 billion yen. Operating profit will fall 62 percent to 50 billion yen (US$420.6 million) this fiscal year, while the sales forecast was kept at 8.23 trillion yen (US$69.2 billion).

Reasons cited for the dive in profits are fairly obvious. Sony CFO Nobuyuki Oneda said in this mini report that a total of 9.6 million Sony-made PC batteries which were found in Dell, Lenovo, Apple, Toshiba, Matsushita/Panasonic, Fujitsu, Sharp and Sony's own notebooks could be subject to the company's global recall. Oneda said replacing the cells will cost 51 billion yen (US$429 million).

"The cost of the recall is our best estimate," Nobuyuki Oneda told reporters. "It may rise or fall."

Other reasons behind Sony's big financial revisions came from PlayStation 3. Sony announced at the Tokyo Game Show that the 20GB variant of the PlayStation 3 would receive a 20 percent price cut even before it hit stores and that it would include an HDMI connection that was previously reserved for the more expensive 60GB version. While this was good news for consumers, to investors it meant a more costly machine to produce. PlayStation 3 sales projections were also cutback due to the delay of the European launch.

Read more about it in this Reuters article.

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Screwing your customers
By shabodah on 10/19/2006 12:03:56 PM , Rating: 4
Does not generally increase profit. Sony go see Ford and GM about this. They could even give you advice on how to come back from it.

RE: Screwing your customers
By retrospooty on 10/19/2006 12:07:26 PM , Rating: 2
LOL... Perfect, and totally true.

RE: Screwing your customers
By FITCamaro on 10/19/2006 1:00:52 PM , Rating: 2
And how exactly does GM and Ford screw their customers?

I own a 2006 Cobalt SS 2.4L 5-speed. Great car. Put over 29,000 miles on it since I bought it late last December. Only been to the dealership once because of an engine code thrown due to me replacing the air filter with a higher flow one and it threw a lean condition flag for a second on the highway. My girlfriend also has a Cobalt. My parents have a 2002 Trans Am WS6 6-speed Collector's Edition thats only been to the dealership because the horn wasn't working quite right.

I'm not a fan of Ford but I don't think they screw people either.

RE: Screwing your customers
By BladeVenom on 10/19/2006 1:07:58 PM , Rating: 2
I believe he's refering to the low quality cars the Big Three were putting out before Japanese competition moved into the market.

RE: Screwing your customers
By retrospooty on 10/19/2006 1:53:34 PM , Rating: 5
They screw thier customers with perpetual quality problems that don't get resoved from one generation of cars to the next.

Thats great that your 2006 cobalt has only sent you to the dealer once. Wait 5 year and see how many issues you have ( I bet you go through at least 2 alternators, a starter and a fuel pump, perhaps a larger issue as well). My 2001 Integra has sent me to the Dealer zero times and it is of course over 5 years old.

As far as quality, US car companies are nowhere near Japan. Closer to a Yugo than Honda or Toyota.

RE: Screwing your customers
By TomZ on 10/19/2006 3:08:57 PM , Rating: 2
As far as quality, US car companies are nowhere near Japan. Closer to a Yugo than Honda or Toyota.

That's not factually true - actually, US brands are continuing to close the quality gap relative to Japanese brands. In fact, when you look at the top-performing manufacturing plants, a number of them are GM and Ford plants, along with their Japanese counterparts.

RE: Screwing your customers
By robber98 on 10/19/2006 4:48:54 PM , Rating: 2
Sure, US brands are continuing to close the gap. But do you realize how big the gap is? ;)

RE: Screwing your customers
By retrospooty on 10/20/2006 11:12:55 AM , Rating: 3
Yes, I have been hearing that for years... I am not sure how they rate manufacturing plants... but year after year the customer sat scores are still bad for US cars. Acura and Lexus are consitantly #1 and # 2 US cars are distant, not even close.

I am not sure what the issue is, because we CAN build reliable trucks. ??? I think the US car makers made a descision to build poor quality in. if you build a car that lasts 10 years, you have lost a customer for 10 years. ? I dunno.

RE: Screwing your customers
By mindless1 on 10/20/2006 3:30:03 PM , Rating: 2
That is utter nonsense. The average GM or Ford car does not come even close to needing all these repairs. Come to think of it, I haven't had to replace any alternators, starters or fuel pumps on any of the Ford or GM vehicles I've owned in the first 10 years.

RE: Screwing your customers
By wiiz3rd on 10/19/2006 2:51:19 PM , Rating: 2
Let me know in a couple years if you still have the same opinion.

RE: Screwing your customers
By Hemipower on 10/19/2006 10:49:23 PM , Rating: 1
this is why our economy sucks, and companies like gm have to move to mexico.

RE: Screwing your customers
By Hemipower on 10/19/2006 10:50:21 PM , Rating: 1
and it all depends on how you treat your cars! drive it hard all the time and never change the oil and see how long that acura will last you.

RE: Screwing your customers
By Samus on 10/21/2006 8:45:22 AM , Rating: 2
He's talking about the past, not the present. GM doesn't have a business opportunity to screw you on your new 2006 Cobalt because these day's that'd be the nail in the coffin for GM.

RE: Screwing your customers
By shabodah on 12/4/2006 4:06:03 PM , Rating: 2
I am most definately talking about the past. Although the perception isn't there yet, the fact of the matter is today, Ford and GM make some of the best vehicles you can buy for the money. That's why I tagged the whole "and come back from it" line on there afterall, lol. (2004 Saturn Ion Redline) :)

RE: Screwing your customers
By TomZ on 10/19/2006 3:04:03 PM , Rating: 2
While it is a fact that GM and Ford have generally had lower quality than their Japanese counterparts, I would hardly characterize that as "screwing their customers." It is more accurate to say that Toyota and Honda generally make better products, and as such should be priced higher in the marketplace (as they are). And this causes a financial problem for GM and Ford since their cost structures are out of whack, mainly due to the burdens associated with unionized labor and their internal inefficiencies.

Also, you are actually wrong twice, since you presume that Ford and GM have figured out a strategy to recover from their current problems. This is actually not the case.

RE: Screwing your customers
By robber98 on 10/19/2006 4:51:43 PM , Rating: 2
Remember Ford attempted to cover-up their mistake few years ago? That's how they treat their customer...

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