29 September, 2006

More Sony batteries are recalled

If you are still counting, Sony has had to recall over 7 million, yes 7 million, laptop batteries. This has affected Dell, Apple, Lenovo/IBM, and Toshiba. According to ZDNet and CNet, Sony's stock has dropped 8.2% since the first battery recalls in the Dell laptops. Of course the stock drop also takes into account the long delay to the PS3 game console. Analyst Masahiro Ono from Morgan Stanely:
Sony's battery business is expected to have an operating profit margin of about 5 percent in the current business year to March. That compares with Sony's own estimate of its overall operating margin of 1.6 percent for the year.
This seems a bit odd with the battery problems -- perhaps there are some financial creativity to handle the expenses related to the recall.

I know that the techies, such as myself, pay attention to this stuff, but it will be interesting to see how big of an effect the battery recall and PS3 delay has on Sony's overall business.

On top of this, we heard rumors of Apple buying Sony in July and now Microsoft. Neither makes too much sense, though we know that Microsoft is not afraid to buy up their competition.

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