Battery Recalls Cost Sony More Than Money


Sony’s PS3 isn’t launched yet, but it has already cost the company $366 million. That was expected and not uncommon when launching a new hardware platform. What Sony didn’t foreseen, however, was the massive battery recall that ended up costing them a whopping $429 million and sent their bottom line screaming into the basement. Practically every laptop maker in the world has recalled Sony’s lithium-ion batteries due to their unfortunate (though rare) habit of overheating and bursting into flames.

While Sony’s decision to reduce the number of PSPs shipped in fiscal 2006 makes a certain amount of sense in light of this financial news, its decision to lower the cost of the PS3 in Japan by 20% is curious. Such a slash will reduce what little profit the company was going to make on the hardware that would have almost certainly sold out at the full asking price.
The cost to Sony’s profits is obvious, but the more subtle damage was done to the company’s image as a mainstay of consumer technology.


1 comment so far

  1. MJHobbs on

    Nice article, I came upon yours on accident. In case you didn’t know you can actually make money now for your articles. At SayItAloud you can write great articles like you already have, but you can make some decent money in the process and get better exposure for your aticle. No matter what you decide I bookmarked your page. You can check out my site by clicking on my name.%d%a%d%aGoodluck and I look forward to your future articles.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

  • Recognition

    Alltop, all the cool kids (and me)

    Top Customer Service Blog
    Online MBA Rankings
  • Recent Comments

    Russell Rudick on The End of the Music Stor…
    86Lucio on $2000 a Year
    Una on $2000 a Year
    Customer Code of Con… on How to Poorly Represent for Yo…
  • Top 10 Posts

  • Amazon Apple Best Buy Blogging Brand Engagement Brand Management Circuit City Co-Creation Content Conversations Customer Experience Customer Made Digital Home Disruption Entertainment Experience Economy Gaming Generation C (ontent) Global Connectivity Greatest Hits Innovation Lifestyle & Leisure Loyalty Marketing & Advertising Microsoft MP3 orthodoxies Power to the Pocket Retail Retail Close to the Customer SecondLife Sensors Services Simplicity Social Media Social Networks Sony Techno Wars Telecom The New Media This Changes Everything Uncategorized Virtual Life Wi-Life Youth
  • RSS Archive Favorites

  • Where Are You?

    Locations of visitors to this page
  • Archives

  • Next-Up

  • Advertisements
    %d bloggers like this: