Nokia warning over 46 million overheating mobile phone batteries

Users of Nokia mobile phones have been urged to check their handsets after the company said that it would replace 46 million batteries after at least 100 of the components overheated while being recharged.

The “product advisory” from the Finnish company will raise further questions over the reliability of the lithium-ion battery technology commonly used in mobile gadgets. Last year, Sony was forced to recall nearly 10 million lithium-ion laptop computer batteries after pictures of one machine bursting into flames in an airport lounge were posted on the internet.

Nokia said that “no serious injuries or property damage have been reported” from its faulty batteries, but a spokeswoman added that it was possible that an overheating battery could cause damage to a surface on which it was left.

The alert issued by Nokia, the world’s largest mobile phone maker, covers a batch of its most widely-used batteries, with the model code BL-5C. The affected units were supplied by Matsushita, the Japanese electronics giant, between December 2005 and November 2006.

Nokia, which is the world's largest maker of mobile phones, was not able to give details on how many faulty batteries were thought to be in the UK. It is thought a flaw in the manufacturing process may have introduced impurities into the components, which have caused short circuits and overheating.

The recall is likely to cost Matsushita tens of millions of pounds, analysts suggested, depending on how many users opt to trade in potentially faulty components. Take up of the replacement offer could be limited, however, as most of the phones affected will now be nearing the end of their lifespan as consumers trade up to new models.

A greater threat could be posed to Nokia as it battles to protect its reputation in an increasingly fierce mobile market, analysts said.

The company prides itself on never having to issue a safety recall for a handset. Yesterday it pointed out that previous battery safety scares had been limited to Chinese counterfeit components, one of which is thought to have exploded in a handset and killed a Chinese man last month.

Richard Windsor, the Nomura telecoms analyst, said: "There is a possibility of damage to the Nokia brand, after the company developed a reputation for excellent reliability in recent years."

Martin Garner, of Ovum, the telecoms researchers, said: "The impact on Nokia is likely to be limited, unless, of course, footage of one of these batteries going up in some style is uploaded onto the web."

A total of at least 300 million BL-5C batteries have been made for Nokia by several suppliers, though only a portion of them are affected.

Sony's battery recall cost the Japanese group about 51 billion yen (£215 million) last year. Last month the company was forced to recall a further 10,000 Sony-made PC battery packs supplied to Toshiba because of fire risks.

Sanyo, another battery maker, has been hit by similar problems and in March said that it would share with Lenovo, the PC maker, the cost of recalling 205,000 Sanyo-made laptop batteries.

Shares in Nokia dipped on the news and were 1.2 per cent lower at €22.35 in morning deals.

Nokia said in a statement: “Nokia has identified that in very rare cases the Nokia-branded BL-5C batteries subject to the product advisory could potentially experience overheating initiated by a short circuit while charging, causing the battery to dislodge."

The BL-5C is one of 14 battery models used in Nokia products.

The company added: “Nokia is working closely with Matsushita and will be co-operating with relevant authorities to investigate this situation.”

To check whether a Nokia battery is one of those affected, click on this link

http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article2256925.ece

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