Matsushita Electric Industrial has announced that the Nokia battery replacement initiative will cost the battery maker between $86 million to $172 million, far less than the maximum cost of replacing all of the potentially affected batteries: $1.2 billion. An analyst determined the $1.2 billion figure, which is about 28 percent of Matsushita's operating profit forecast for 2008.
Last week, Nokia announced that Matsushita will pay for all direct costs related to the product advisory, which promised to replace BL5C phone batteries in Nokia phones that are prone to overheating and expanding.
For more on the Matsushita story:
- read this WSJ article (sub. req.)