Apple joins laptop recall bandwagon

There were scenes of distress in the tech industry today as Apple Computer Inc initiated a worldwide exchange program...

There were scenes of distress in the tech industry today as Apple Computer Inc initiated a worldwide exchange program for 1.8 million rechargeable batteries for its some of its iBook G4 and PowerBook G4 computer systems sold from February 2006 through May 2006. The recall is because of a risk that the batteries could overheat and catch fire.

This is the second biggest recall ever, and follows Dell Inc8217;s announcement last week that it will replace 4.1 million batteries for laptops, also because of a fire hazard that was heavily publicised after a Dell laptop burst into flames during a conference. Both Dell and Apple are replacing the Lithium-ion batteries made by Sony Corp, whose brand image as well as stock were hit as the news spread.

The United States Consumer Product Safety Commission CPSC, which announced the voluntary recall along with Apple, said the company had reported nine incidents of batteries overheating, including two that resulted in minor burns and others that caused some property damage. The agency said no serious injuries or deaths were reported.

Shares of Sony fell as much as three per cent to a one-month low on Friday, even though the recalls are expected to have only a limited financial impact on the Japanese electronics maker. Sony shares finally closed two per cent lower. Shares in Apple rose 50 cents, to close at 67.81. Both Dell and Apple have said that they will continue to work with Sony on computer system batteries.

Apple has said that 700,000 of the batteries were in computers sold outside the US, leading to concerns over the future of laptop sales in emerging markets including India, where the rate of laptop sales recently overtook PC sales.

Apple8217;s recall represents a third of the laptops it has sold over the specified dates, though some of its customers will now be replacing batteries that Apple had sent as part of an earlier recall. Apple8217;s earlier recalls were smaller in scale and include one in August 2004 that involved 28,000 batteries and another in May 2005, which involved 128,000 more. In these cases, the batteries were made by LG Chem of South Korea.

Sony Corp. has said that it will bear most of the cost of the Dell and Apple recalls, which it estimates will be as much as 258 million. It also said today that it does not expect recalls to spread to batteries used in other devices like mobile phones or portable music players, since they use a different type of battery cells.

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8220;Apple has determined that certain lithium-ion batteries containing cells manufactured by Sony Corp of Japan pose a safety risk that may result in overheating under rare circumstances8230; Apple is voluntarily recalling the affected batteries and has initiated a worldwide exchange program to provide eligible customers with a new replacement battery, free of charge,8217;8217; according to the Apple website.

The 12-inch iBook G4, 12-inch PowerBook G4 and 15-inch PowerBook G4 are the affected models up for battery replacement at no cost.

On its part, Sony has said that it 8220;anticipates no further recalls of battery packs using these particular battery cells.8221; It also said it had changed its manufacturing process to improve the safety of the cells. 8220;We believe the issue has been addressed to the satisfaction of our customers,8217;8217; according to news reports quoting the company.

To fight the fire, earlier this week, major notebook makers Dell, Hewlett-Packard and Lenovo also decided to set up an industry assoociation dedicated to setting standards for the lithium-ion batteries that have suddenly started exploding, causing these recalls.