Thursday, June 26, 2008

Nokia’s explosive predicament

By Jeff Kagan, Wireless and Telecom Industry Analyst, Atlanta GA USA
Nokia has always meant good quality and safe phones. Suddenly batteries on the phones are exploding. On a public safety front, and on a public relations front, this is bad news for the unlucky customers and for the company. One important question is how will this affect Nokia’s market share? Short term, it’s like a punch in the stomach. Longer term it depends on how Nokia handles it. Currently this is tarnishing an otherwise strong brand, but they can recover if this crisis is handled well and if there are no future problems. The bigger problem has to do with these exploding batteries on a variety of devices. It is reported that this problem is with the batteries included with Nokia phones when purchased. Nokia does not manufacture the batteries, but they have to take responsibility for them. Even though this problem has been limited so far, Nokia is recalling all the affected phones. The impact on Nokia is unknown at this point, but the company is doing the right thing. We have heard of similar problems of batteries exploding or catching fi re in a variety of devices during the past couple of years.

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Source :
IIPM Editorial, 2008

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