Nokia’s recent plague of faulty handsets could cost the Finnish mobile giant up to $132 million a quarter, according to brokers at Dresdner Kleinwort.
Many users of Nokia’s new handsets have had problems that have resulted in 10% of the devices being returned as faulty. The most common complaints have included intermittent problems with the display unit or the screen not working at all.
At present, repairs are costing the company the equivalent of $1 per handset sold, but the worry for Nokia is that the 10% returns rate is rising fast – the figure may get as high as one in seven. Considering Nokia sells an average of 12.5 million devices a month, it’s no surprise that the repairs could prove costly for the company.