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Apple Recalls 1.8 Million Sony Batteries

By RACHEL KONRAD
The Associated Press
Thursday, August 24, 2006; 6:27 PM

SAN FRANCISCO -- Ten days after Dell's record-setting notebook battery recall, Apple Computer Inc. told its customers Thursday to return 1.8 million batteries that could cause their Mac laptops to overheat and catch fire.

Both recalls involve lithium-ion batteries made by a Sony Corp. subsidiary in Japan, where the manufacturing process introduced metal particles into battery cells. Makers of battery cells strive to minimize or eliminate the presence of such particles, which can cause computers to short circuit, or, in extreme situations, catch fire.


Exterior view of Apple Computer headquarters in Cupertino, Calif., Friday, Aug. 4, 2006. Apple will pay $100 million to rival Creative Technology Ltd. to settle five patent lawsuits. (AP Photo/Paul Sakuma, FILE)
Exterior view of Apple Computer headquarters in Cupertino, Calif., Friday, Aug. 4, 2006. Apple will pay $100 million to rival Creative Technology Ltd. to settle five patent lawsuits. (AP Photo/Paul Sakuma, FILE) (Paul Sakuma - AP)

In its recall announcement, Apple said it has received nine reports of lithium-ion battery packs overheating, including two cases in which users suffered minor burns and some involving minor property damage. The Apple recall only applies to older notebooks _ not the just-released MacBooks and MacBook Pros.

On Aug. 14, Dell Inc. recalled 4.1 million faulty laptop batteries _ the largest involving electronics in the history of the U.S. Consumer Product Safety Commission.

Sony Energy Devices Corp. said the Dell and Apple batteries were configured in slightly different ways. In a statement, Sony said the problems arise "on rare occasions" when microscopic metal particles hit other parts of the battery cell and lead to a short circuit.

Sony said the recalls will cost it between $172 million and $278 million. Apple spokesman Steve Dowling said its recall was not expected to materially affect the company's results. Dell has said the recall would not affect earnings.

Apple shares closed Thursday at $67.81, up 50 cents. Dell shares closed at $21.78, up 14 cents.

Spokespeople at other large computer makers, including Hewlett-Packard Co., Gateway Inc. and Lenovo Group, the Chinese computer maker that bought IBM's PC business, said Thursday they did not expect to have problems with their batteries.

Although Lenovo uses Sony batteries, Lenovo engineers configured their battery packs differently than Dell or Apple. They also rigorously tested the battery packs with Sony engineers, and they're "highly confident" the laptops aren't going to overheat.

"Lenovo designs its battery packages a different way," said Lenovo spokesman Bob Page. "How close the battery pack is it to a heat source, how evenly can you keep the heat in battery cells, the basic geometric arrangement of the cell _ all those things affect whether there will be problems."

Analyst Tim Bajarin of Creative Strategies said investors wouldn't likely blame or punish Apple for the battery recall.

"When you view Apple, you've really got to see a company that's doing well on all levels of products," he said. "You've really got to judge them on the whole. Like with any company, you might have a hiccup here and there. What I really would have had a problem with was if they had covered it up."


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