The Math behind Apple and Dell Recalls

Now that Apple has also decided to do a recall I decided to figure out how much it actually costs to manufacture these batteries.

Apple sells a replacement battery for their Powerbook G4 for $129. A bit pricey.

CNN says:

Sony said its recent recalls – 1.8 million batteries for Apple and 4.1 million for Dell announced last week – will cost the company between $172 million and $258 million.

This works out to $30 – $46 per battery (vs the $129 that you or I pay). That’s one heck of a profit!

To be fair it might actually cost Sony more to manufacture these batteries because since this is a recall they might have told their suppliers to wave their profits.

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