Sony Bravia Recall
October 12, 2011 by staff
Sony recalled the liquid crystal display televisions after a September incident in which a customer noticed a small fire and smoke, said Shima Yuki, a Tokyo-based spokesman for the world’s No. 3 maker of televisions. Eleven cases have been reported in Japan since 2008, according to a company statement, and no injuries were reported.
A faulty component in the backlight system can be the source of heat that can melt the top of the television, said Shima. It is the second withdrawal for Sony products in a month, KDDI Corp., Japan’s second largest mobile operator, saying that replacing batteries made by Sony in about 2 million mobile phones because they can overheat and melt .
“Sony-related recalls succeed each other and that can ruin the brand image of the company,” said Keita Wakabayashi, ananlyst at Mito Securities Co., who rates the shares “more neutral”. “Given the overall size of Sony, the TV remembers won ‘t shake the company’s land.”
The transformer uses the same in all five models of Bravia in Japan being recalled, according to a statement from Sony.
The recalled sets will be repaired if a part failure was found. Sony will send a team to inspect the service and can offer a whole TV rent while repairs are made, said Shima. Sony will not offer refunds or replacement of televisions, he said.
U.S., Europe Announcements
There have been no reports of incidents of overheating outside Japan, the statement said. The recalls also will be released today in the U.S. and Europe, said Shima.
The recall was announced after Tokyo markets closed. Sony rose 1.4 percent to close at 1.517 yen. The stock has plummeted 48 percent this year, compared with a 16 percent decline in the broader Topix index.
“You could adversely affect the removal action if the market makes a significant amount of spending,” said Wakabayashi.
The repair will have a negligible impact on the incomes of Sony, said Shima. The recall was voluntary, he said.
Sony shares fell to their lowest level in 24 years earlier this month on speculation the strong yen and falling demand for TVs will affect profits. The company, which forecast full-year operating profit of 200 million yen (and 2.6 billion) in July, lost about 6 billion yen in annual operating profit, or sales minus cost of goods sold and expenses administrative, for each 1 yen decline against the euro.
This is the first retirement of the company’s flat-screen TVs, though not the first associated with the Bravia line. In April 2010, Sony offered to repair the supports placed in two models, because the bolts were not strong enough and the stands would collapse.
That same month, the company recalled 535,000 Vaio personal computers due to possible overheating of faulty temperature control.
On the other hand, the second largest gaming machine manufacturer, said today that temporarily suspended about 93,000 user accounts your online gaming and entertainment services after finding they were cut.
“A massive number” of unauthorized attempts by intruders were detected between October 7 and October 10, Sony spokesman Satoshi Fukuoka said. Efforts include user names and passwords that match with 93,000 accounts, including at least 35,000 in the U.S. and 24,000 in Europe, he said. The personal information including home addresses, on some accounts may have been compromised, he said.
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