You are in > manchester.com  > News > Nokia shares drop on battery fears

Business

Nokia shares drop on battery fears

15/08/2007

Nokia's share price in both the US and Europe dropped yesterday after the mobile-phone manufacturer warned that millions of batteries used in its handsets were at risk of overheating.

The company said in a statement that, across the world, there had been around 100 reports of the BL-5C batteries overheating.

It has offered to replace the Nokia-branded batteries, which are made by Japanese firm Matsushita, free of charge if customers contact the company.

The recall affects 46 million batteries manufactured by Matsushita between December 2005 and November 2006, confirmed Nokia.

Company bosses stressed that "in very rare cases" the batteries "could potentially experience overheating initiated by a short circuit while charging, causing the battery to dislodge".

Helsinki-based Nokia stressed that no serious injuries or damage to property had been reported as a result of the report.

However some analysts claimed that manufacturing glitch could harm Nokia's brand name.

But the mobile phone maker refuted the claims, stressing that it had acted responsibly in responding quickly to the problem.

"By reacting swiftly and responsibly, and by being fully transparent, we believe that consumers will continue to view Nokia as a responsible and trustworthy brand," Robert Andersson, Nokia's head of customer and market operations, told the Reuters news agency.


© Adfero Ltd