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Battery woes flatten Sony profits | Battery woes flatten Sony profits |
(4 days later) | |
Sony's quarterly profits have tumbled by 94% after the firm recalled millions of laptop computer batteries because of a potential fire risk. | Sony's quarterly profits have tumbled by 94% after the firm recalled millions of laptop computer batteries because of a potential fire risk. |
The Japanese firm has also been hit by delays to its PlayStation 3, which in Europe will not be released until next year, missing the Christmas market. | The Japanese firm has also been hit by delays to its PlayStation 3, which in Europe will not be released until next year, missing the Christmas market. |
Net profit plunged to 1.7bn yen ($14m; £7.6m) between June and September, from 28.5bn yen a year earlier. | Net profit plunged to 1.7bn yen ($14m; £7.6m) between June and September, from 28.5bn yen a year earlier. |
About 9.6 million of the lithium-ion batteries have been recalled. | About 9.6 million of the lithium-ion batteries have been recalled. |
Major laptop manufactures - including Apple, Toshiba, Hitachi and Lenovo - were affected by the recall, which Sony says it has set aside 51bn yen to deal with. | Major laptop manufactures - including Apple, Toshiba, Hitachi and Lenovo - were affected by the recall, which Sony says it has set aside 51bn yen to deal with. |
Modifications made | Modifications made |
Earlier this week, Sony's management apologised for the problem, but said that nobody would be resigning over the issue. | Earlier this week, Sony's management apologised for the problem, but said that nobody would be resigning over the issue. |
It said it had found only one problem in the 350,000 batteries recalled from its own-brand laptops. | It said it had found only one problem in the 350,000 batteries recalled from its own-brand laptops. |
Modifications had been made to the production, design and inspection processes to prevent overheating problems in future, it added. | Modifications had been made to the production, design and inspection processes to prevent overheating problems in future, it added. |
Sales in the quarter rose 8.3% to 1.85 trillion yen. | Sales in the quarter rose 8.3% to 1.85 trillion yen. |