Dell recalls notebook PC batteries over fire risk

SAN FRANCISCO - Dell notebook computer owners in New Zealand were being contacted today if they own a computer battery which can overheat and catch fire, as part of a worldwide battery recall .

Dell New Zealand's corporate communications manager Paul McKeon said customers would be contacted today if they were affected by the worldwide 4.1 million recall of Dell-branded lithium-ion batteries.

Under rare conditions, it was possible for the batteries - with cells manufactured by Sony - to overheat, which could cause a risk of fire, he said.

As Dell sold directly to customers the company knew which customers had products with batteries involved in the recall, he said.

New Zealand customers can if they have a battery involved in the recall by visiting www.dellbatteryprogram.com or calling Dell on 0800 941 140.

Dell Inc, the world's largest personal computer maker, said the voluntary recall, issued together with the US Consumer Product Safety Commission, was the biggest in its 22-year history.

No injuries have been tied to the defect, Dell said. Dell has received six reports of batteries overheating, causing damage to furniture and personal belongings, the safety commission said.

The recall comes as Dell is trying to refresh its image, launching a marketing campaign to demonstrate improvements in its customer service after the company was hit with complaints of inferior after-sales service. Dell is investing about US$100 ($161.42) million this year and hiring 2,000 people to improve service.

The company also has taken a beating on Wall Street, with its stock falling 47 per cent over the past 12 months while rival Hewlett-Packard Co.'s stock surged 37 per cent. Dell's growth has slowed amid tougher competition.

The battery cell is used by other computer makers, including Apple Computer Inc. A spokeswoman said Apple was looking into the issue.

The recall of batteries in machines sold from April 2004 through last month spans the company's notebook lines, including Latitude, Inspiron and Precision models, Blackburn said.

Blackburn also said that the recall would have no financial "material impact" on Round Rock, Texas-based Dell.

The recall involves 18 per cent of Dell's 22 million notebook computers sold between April 2004 and July 2006. It comes three days before Dell is scheduled to report its fiscal second-quarter earnings.

Shares of Dell were down US27 cents, or 1.3 per cent, at US$20.97 in extended trading.

- REUTERS / NZPA