In the recent past, product recalls by various manufacturers have been making news worldwide, bringing consumer product safety to a peak and massive market losses, inevitable. When a core component is recalled, like in the case of Intel, it is not only Intel which suffers, but a whole range of product manufacturers, having had designed and manufactured their products, using the said defective components as their core parts. Code named “Cougar Point”, Intel’s chip is a part of the total chipset contained in the second generation Core series of Sandy Bridge processors. Having had released this product in early January, Intel had already shipped over 8 million chips which will need replacement after detection of the design flaw and are in a way happy that the realization came in quite early, limiting the extent of damage to Intel.
This unfortunate debacle has definitely put Intel on a backfoot, but their prompt and quick handling of the situation with the “Cougar Point” recall is estimated to cross the 1 billion mark, net loss, in the first quarter of 2011 considering lost revenues in addition to repair and replacement expenses associated with the fallout.
Some of the companies affected in this debacle include, Acer, ASUS, Toshiba, etc. In the US, product recalls is a known concept as early as 1959 – 1960, when Cadillac recalled and the steering linkage was replaced on a phenomenal number of cars. 1994 saw Intel Pentium processors recalled, setting them back financially, in a massive way. 2010 saw Toyota recalling several million vehicles because of faulty accelerator pedals. Internationally, consumer protection is now coming of age. In many other countries also this adds value to the brand if they can do it in an honorable manner. Each country has their product recall agency defined.