By: MARIKO YASU and TAKASHI AMANO,SONY yesterday recalled 1,6-million Bravia flat-panel TVs sold worldwide since 2007 because a faulty component may cause them to melt or catch fire, and said it had suspended more than 90000 accounts because of a new hacking attack. Sony recalled the liquid-crystal display TVs after an incident last month in which a customer noticed a small fire and smoke, said Yuki Shima, a Tokyo-based spokeswoman for the world's third-largest maker of TVs. Eleven incidents have been reported in Japan since 2008, according to a company statement. No injuries have been reported. A faulty component in the backlight systems may be the source of overheating that can melt the top of the TV set, Ms Shima said. It was the second recall involving Sony products in a month, with KDDI, Japan's second-largest cellphone operator, saying it would replace Sony-made batteries in as many as 2-million handsets because they may overheat and melt. "Sony-related recalls are following one another and that may ruin the company's brand image," said Keita Wakabayashi, an analyst at Mito Securities. "Considering Sony's overall business size, the TV recalls won't shake its grounding." The same transformer is used in the five Bravia models in Japan being recalled, Sony said. The recalled sets will be repaired if a faulty part was found. Sony would dispatch a service crew to inspect the set and may offer a rental TV while repairs were being made, Ms Shima said. Sony would not offer refunds or replacement TVs, she said. There have not been any reports of overheating incidents outside Japan. The recalls would also be announced yesterday in the US and Europe, Ms Shima said. The recall was announced after Tokyo markets closed. Sony rose 1,4% to close at ¥1,517 ($19,60). The stock has plummeted 48% this year, compared with a 16% decline for the broader Topix index. "It could impact the stock negatively if the recall causes a significant amount of expense," Mr Wakabayashi said. The repairs would have a negligible affect on Sony's earnings, Ms Shima said. She also said the recall was voluntary. Sony shares declined to their lowest in 24 years earlier this month on speculation that the yen's strength and slumping demand for TVs would hurt earnings. The company, which forecast full-year operating profit of ¥200bn in July, loses about ¥6bn of annual operating profi t for every ¥1 decline against the euro. This is the company's first recall of flat-screen TVs, though not the first associated with the Bravia line Separately, Sony yesterday said it temporarily suspended about 93000 user accounts of its online gaming and entertainment services after finding they were hacked. "A massive number" of unauthorised attempts by intruders were detected between Friday and Monday, Sony spokesman Satoshi Fukuoka said. The efforts included usernames and passwords that matched 93000 accounts, including at least 35000 in the US and 24000 in Europe, he said..
Source: BusinessDay,
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