Business News

CCTV Script 14/09/16

This is the script of CNBC's news report for China's CCTV on September 14, Wednesday.

Welcome to CNBC Business Daily, I'm Qian Chen.

Product recalls can cause a big dent to a company's image and profits.

Samsung's recall of the Galaxy Note 7 smartphone following reports of exploding batteries could have an impact of around 1 trillion South Korean won ($900 million) to the company's third-quarter operating profit, analysts have warned.

But Samsung is not the only company which has had to issue a product recall. CNBC runs through some of the biggest tech recalls ever.

Sony batteries in Dell laptops

In 2006, Dell was the largest PC maker in the world and was forced to issue the recall of 4.1 million notebook computer batteries because of the risk of them catching fire.

The batteries were made by Sony and represented around 15 percent of the batteries the company sold between mid-2004 and 2006.

"In rare cases, a short-circuit could cause the battery to overheat, causing a risk of smoke and or fire," a Dell spokesman said at the time. "It happens in rare cases but we opted to take this broad action immediately."

Dell offered customers free replacements.

Hoverboards

Two-wheeled self-balancing scooters - known as hoverboards - were one of 2015's biggest fads, but there were a number of reports of these gadgets catching fire.

At the end of last year, a number of U.K. retailers recalled thousands of the devices while this year, U.S. firms followed suit, recalling over 500,000 hoverboards.

Apple AC wall plug adapter

Apple announced a recall of some of its power adapters sold with a number of its products since 2003 because there was a risk of electrical shock.

The announcement came at the start of 2016 and referred to issues with two-pronged power adapters which are used for Europe, Korea, Australia, New Zealand, Argentina and Brazil.

Apple allowed customers to exchange their adapters at a local store or request a replacement online.

Amazon Fire tablets

Earlier this year, Amazon recalled the power adapter on some models of its Fire tablets in the U.K. because of the risk of an electrical shock.

Amazon's 7-inch Fire and Fire Kids Edition tablets sold since September 2015 were affected.

Google Nest

Nest - a company which makes connected devices for the home including thermostats and security cameras - issued a recall for 440,000 of its smoke detectors in 2014, the same year that Google acquired it for $3.2 billion.

The company found that users could unintentionally turn off the smoke detector - which would be dangerous in a situation where there was smoke or a fire.

Nest's alarm was pulled from sale in April 2014 but the company released a software update to fix the problem.

Xbox 360

In 2007, several reports trickled in that Microsoft's Xbox 360 console was suffering from a problem known ominously as the "red ring of death".

The system would shut down and could not be operated while a red light appeared on the console's front panel.

As a result, Microsoft extended its warranty for the Xbox 360 to three years meaning users could return the console and get it repaired. The warranty also applied to consoles bought in November 2005 when it first launched.

The episode cost Microsoft around $1 billion, according to the company.

CNBC's Qian Chen, reporting from Singapore.

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