Dell battery recall - 4 million batteries

, posted: 15-Aug-2006 13:28

Some of you may recall the recent incidents of Dell laptops catching fire.

On 15th of August, Dell has announced a recall of Inspiron, Latitude and Precision mobile workstations and XPS units shipped between April 2004 and July 2006

The battery itself is made by Sony, hence Sony is working with Dell through this recall as well as providing some financial support.

Dell has not say how much this recall will cost, but I think it would be fun to work it out.

Let's make the following assumptions: 

- Only 3 million battery units were actually recalled (not everyone will follow the recall)
- Postage for each unit to Dell would cost USD$5 (considering Dell will get bulk deals) * 3,000,000 = $15,000,000
- New battery factory price - USD$40 * 3,000,000 = $120,000,000
- Promotion of this recall USD $1,000,000
- Various admin costs: assuming it takes 20 minutes to process each recall - = $1,000,000 hours @  USD each $6 (Dell rates) = $6,000,000

That's $142,000,000 USD so far..... have I missed out on anything else??

dell laptop fire damage - image courtesy tom's hardware guide      dell laptop fire damage - pic courtesy of the sydney morning herald 

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Trackback by Shop at somewhere online, on 16-Aug-2006 16:32

Dell's note pc are recalled.

Because of the battery problem.

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