Garmin to recall 1.25 million PNDs due to fire hazard from overheating batteries

personal-navigation-devicesGarmin Ltd, the foremost GPS devices maker in the US, has recently announced that it is recalling nearly 1.25 million personal navigation devices (PNDs) over concerns of potential fire hazards due to overheating batteries.

About the recall, Garmin, which had sold nearly 800,000 of the recalled units were in the US, said that reports of battery overheating have come in only 10 cases; and there has been no injuries caused. 

The navigation company elaborated that the recall pertained to its ‘Nuvi’ range of devices, which featured batteries by a third-party supplier within a defined date code range. According to the company, each of these devices had the same specific printed circuit board design.

Garmin also almost instantly informed its investors that the announced recall of the PNDs will not adversely affect the quarterly results of the company. Going by the statistics, the 4 million PND units sold during the last quarter comprised nearly half of the company’s total revenue.

Analysts too are of the opinion that the recall will not hurt Garmin’s quarterly sales. Noting that the recall probably does not mean much, an Oppenheimer analyst Yair Reiner, said: “Product recalls in the consumer electronic space are not unusual and recalls involving battery issues are fairly common.”

Going by the information forwarded by Garmin, the cost of replacement packs for the recalled PNDs will be shared by the unnamed battery supplier.