Battery Recalls Up; Sony Reputation Down
Just when you think you’ve heard the last bad news for Sony, out pops another disaster. According to Reuters, Toshiba Corp. and Fujitsu Ltd. joined a growing list of computer makers recalling Sony Corp (NYSE:SNE – news). batteries in the latest blow to consumer confidence in Sony’s reputation as a manufacturer. This follows an announcement from IBM/Lenovo yesterday that they were recalling more than half a million notebook PC batteries made by Sony after a computer caught fire at Los Angeles International Airport
Toshiba is recalling 83,000 batteries, bringing the total number of Sony batteries recalled to more than 7 million since mid-August.
The August recalls for Dell and Apple will cost Sony between $170 million-$255 million. The higher figure equals about one-fourth of Sony’s net profit for the current business year to March.