[Infowarrior] - Dell to recall 4.1M laptop batteries

[Richard Forno]

 Dell to recall 4.1M laptop batteries

http://news.yahoo.com/s/ap/20060815/ap_on_hi_te/dell_battery_recall_10&print
er=1

Dell Inc. said Monday it will recall 4.1 million notebook computer batteries
made by Sony Corp (NYSE:SNE - news). because they can overheat and catch
fire.

Round Rock-based Dell negotiated conditions of the recall with the federal
Consumer Product Safety Commission, which called it the largest
electronics-related recall ever involving the agency.

A Dell spokesman said the Sony batteries were placed in notebooks that were
shipped between April 1, 2004, and July 18 of this year.

"In rare cases, a short-circuit could cause the battery to overheat, causing
a risk of smoke and/or fire," said the spokesman, Ira Williams. "It happens
in rare cases, but we opted to take this broad action immediately."

The battery packs were included in some models of Dell's Latitude, Inspiron,
XTS and precision mobile workstation notebooks. Dell planned to launch a Web
site overnight that would describe the affected models. Williams said the
Web site would tell consumers how to get free replacement batteries from
Dell.

Dell officials declined to say how much the recall campaign would cost or
what portion, if any, Sony would pay. Sony officials did not immediately
respond to requests for comment.

The larger potential cost for Dell is that such a huge recall could dampen
future notebook sales.

Dell rival Hewlett-Packard Co. said it does not use Sony batteries and was
not affected by the recall. Apple Computer Inc. is investigating whether its
notebook batteries meet safety and performance standards, spokeswoman Lynn
Fox said.

There have been numerous recent news reports about Dell laptops bursting
into flames, and pictures of some of the charred machines have circulated on
the Internet.

Dell, the world's largest maker of personal computers, confirmed that two
weeks ago, one of its laptops caught fire in Illinois, and the owner dunked
it in water to douse the flames. Other reports have surfaced from as far
away as Japan and Singapore.

Monday's move was at least the third recall of Dell notebook batteries in
the past five years.

Dell recalled 22,000 notebook computer batteries last December after
symptoms that were similar to those that prompted Monday's recall. The
company also recalled 284,000 batteries in 2001.

Consumers with affected laptops should only run the machines on a power
cord, said Scott Wolfson, a spokesman for the Consumer Product Safety
Commission.

The safety agency knows of 339 incidents in which lithium batteries used in
laptops and cell phones ‹ not just Dell products ‹ overheated between 2003
and 2005, Wolfson said.

The list of incidents ranges from smoke and minor skin burns to actual
injuries and property damage, Wolfson said.

Most of the incidents reported to the CPSC occurred around the home, but
transportation-safety officials have become increasingly concerned about the
threat of a laptop causing a catastrophic fire aboard a commercial jetliner.

For Dell, the recall comes as it battles other questions about quality and
customer service. Last year, Dell absorbed a charge against earnings of $338
million to repair faulty computer components.

Dell's sales have grown this year, but less rapidly, causing shares in the
company to lose nearly one-half their value in the past 52 weeks. The shares
closed Monday ‹ before news of the recall ‹ at $21.24, up 17 cents on the
Nasdaq Stock Market. They fell 24 cents in after-hours trading.