Battery shortage brings price hike

 

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By Reuters

Posted on 26 Mar 2008 at 08:04

Dell claims a global battery shortage is forcing it to increase prices.

Dell blames the shortage of laptop batteries on a recent fire at a major South Korean supplier, LG Chem, but the company says it is working with other suppliers to limit any further price increases.

"The industry is experiencing battery supply constraints because of these problems," says Dell spokesman Jess Blackburn, declining to divulge figures. "Therefore, pricing is being impacted by current availability. But we are working with our partners throughout our supply chain to reduce the impact on our customers."

"[Dell is] not commenting on what impact, if any, that this is having on the prices of our [laptop] products," adds Blackburn.

The shortage has also hit Asustek, which says that around 40% of second-quarter shipments could be affected.

Fellow PC manufacturer HP says it has yet to determine how the shortage will affect stock or prices. "The full extent of the impact to HP and other original equipment manufacturers is still being determined," says Mike Hockey, HP spokesperson.

"We are aggressively working within the battery cell industry to secure additional supply of battery cells."

LG Chem says it expects the Ochang plant, which was hit by the fire, to start production again in two to three months.