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The High Cost to Enterprises of the Notebook Battery Recall PDF Print E-mail
Analyst firm releases report on The High Cost to Enterprises of the Notebook Battery Recall. Analysis indicates that the cost of the recent notebook battery recalls for several vendors’ products could cost a typical company $625,000, and will cost enterprises overall $372 Million.
Northborough, MA, October 20, 2006: A report released today by J.Gold Associates analyzes the cost of replacing all of the batteries installed in notebooks that have recently been recalled by Dell, Lenovo, Toshiba, Apple, etc., and that are being used by mobile workers at many companies. While the cost of the replacement batteries is being borne by Sony and the various notebook manufacturers, there remains a high cost burden on companies who must actually do the work of replacing the battery in each device. And that work costs companies real money! In this report, J.Gold Associates highlighted the following costs companies must endure to rectify the problems caused by their notebook suppliers. Included were:
  • A total cost of $372M for the approximately 3M enterprise-deployed notebooks covered under
  • the battery recall
  • A replacement cost per company located unit of $102 or per field unit replacement of $148
  • A cost to a typical enterprise notebook installation of $625,000 of un-reimbursed cost

According to Jack E. Gold, Principal Analyst and Founder of J.Gold Associates, “while much has been made of the cost to Sony of the notebook battery recall, little has been mentioned of the high costs companies will have to bear to rectify the problem in their installed equipment. Companies need to understand that the cost of any product recall is not free to them, and that substantial unexpected and un-reimbursed expenses will be accrued. This recall will cost enterprises a great deal, and companies should endeavor to recover some of those costs from their vendors.”


The research report with cost model is available by contacting Jack Gold at J.Gold Associates.

 
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