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So How Screwed is Matsushita?

August 23, 2007 in Wireless Industry News

First, you’re probably wondering: who’s Matsushita, and what in the world does he or she have to do with Nokia?

Or maybe you’ve already heard of Matsushita, and you know that it’s a large manufacturing conglomerate in Japan that produces, among other equally generic products, Panasonic DVD players. And BL-5C batteries.

Nokia BL-5C Battery

The Nokia/Matsushita BL-5C battery.

It turns out that Matsushita’s the main culprit behind the 46 million faulty Nokia batteries. Or rather, the factory in Southern China that manufactured said batteries. (sound familiar?)

Not to bash Chinese manufacturing, but the country’s factories are certainly NOT on a roll these days.

According to Forbes, if 46 million batteries were replaced, it could cost the Japanese manufacturer as much as $1.2 billion dollars, assuming a unit cost of $26 per battery. Wow! I always wondered why Nokia charged 50 bucks for a battery.

Back on track, that $1.2 billion would be five times the amount that Matsushita actually earns from its entire battery business.

The good news is that none of the 100 or so overheated batteries caused any injuries. So no explosions this time around.

Forbes: Matsushita Faces Big Jolt From Battery Recall

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