Monday, June 23, 2008

Nokia gets a battering over faulty batteries

The BL-5C battery recall is not only costing Nokia a lot of money – it’s bound to have a negative impact on the image of the brand that enjoys an almost 70% share in the mobile handset market in India. (See the 4Ps B&M Cover Story on product recalls in this issue of the magazine) Almost six million complaints have been registered by Nokia in India; 5% of these will have to be replaced. Each battery costs around Rs.700 – or $17; in all, about Rs.210 million or $5.1 million is going to be spent by Nokia in India to replace the BL-5C batteries. Earlier, Nokia had committed to replace the BL-5C batteries worldwide, admitting that manufacturing defects were leading to overheating of the battery while charging. The defective batteries were manufactured by Japanese company Matsushita, between December 2005 and November 2006, and were used to power more than 50 Nokia models. Some experts feel that by offering to replace the batteries (before the matter got out of hand, that is!), Nokia has done good damage

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative