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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (55124)	7/31/2006 6:23:08 PM
From: inaflash	Respond to of 213184

In addition to the points Michal already made, I would add this: Apple is most likely getting a credit from the manufacturer for each replaced battery, and they may have to physically return them to get it. By the way, they are asking customers to give them a credit card number to secure the return of the old battery. If these things are being recycled, it may be cheaper to dispose of them than to pay postage for them. Paperbacks are famous for tearing off the front covers of unsold books and throwing out the rest in the trash. I'm sure software has similar type of destroy versus return policies. It might be possible to do the same with batteries as long as a good way to remove the liability attached if there were ever an issue. In this case, if they're asking for a credit card, it isn't a usual recall program. Looks more like a pre-emtive warranty exchange program, where they cross ship and charge you as a replacement part if you don't return the original in a timely manner. I'm sure they're experiencing a very high rate (<50%)of failures or they wouldn't be doing this so proactively. If it were as low as 20-30%, they could just announce the problem and ask anyone who wants to to get it. In this case, they seem to just want to eliminate this liability.