CRN Interview: Battery-Biz CEO On Potential Battery Shortage And Lessons Learned From Recall

Battery-Biz Inc. COO Aakar Patel spoke with CRN News Editor Steven Burke about the 5.9 million laptop battery recall from Apple and Dell and the impact it has had on the distributor of aftermarket rechargeable batteries, adapters and chargers. The 18-year-old Newbury, Park Calif company counts some 10,000 VARs among its customers.

CRN: Do you think we are going to see a battery shortage in the wake of the 5.9 million battery recall from Apple and Dell?

Patel: We may see a battery shortage and it may be just because of raw materials and time to get product shipped out. It all depends on how many Dell and Apple users sign on and go for recalls. If it is 100 percent, yes, there will be a shortage. If it is 10 percent, maybe not. It all depends on the amount of people that will go and get replacements. It is totally dependent no how many people will sign up for a recall.

CRN: Talk about the business and what impact the Dell-Apple recall has had on it?

Patel: Short term we see a small spike, nothing to write home about. I think they are both taking care of their customers well, which I would expect them too. Long term it is too early to tell.

CRN: What is your advice to solution providers who have customers knocking on their door that have defective batteries from Apple and Dell?

Patel: They should contact Apple and Dell and get the right service. The only issue I see is from personal experience. My Dad put one in. I am sure the lead times are long for replacement. I am sure it is going to take some time.

CRN: Isn't there a big upsell opportunity for solution providers who can team with Battery-Biz to provide their clients with immediate replacement of these batteries?

Patel: That is correct. It is two weeks in general to get a replacement and we have seen a spike in business. We have already geared up on our side to have enough replacements. We use the same cells as tier one OEMs do that are not part of the recall. We are in a good spot where we have the right quality.

CRN: How quick can VARs get a replacement for an Apple or Dell defective battery by ordering from Battery-Biz?

Patel: We basically can guarantee 98 percent same day shipment right now. We have geared up for enough of what we think is a spike. It would be two weeks out worst case if we didn't have them in stock.

CRN: How many do you have in stock on the Apple and Dell side?

Patel: We have thousands in stock. There are 12 SKUs in total that are part of the recall. We have 10 of them and 2 we don't have. For the most part it's the 80 - 20 rule, if you look at Dell and Apple, we have all the batteries that are a major concern.

CRN: What are the two SKUs you don't have?

Patel: We have all three Apple SKUs and we have 90 percent of the Dell SKUs.

CRN: Are those batteries that you have manufactured to your specification with the Battery-Biz brand?

Patel: Yes it is. The main component that is the failure component is the cells inside the battery. That is the key driver in this whole thing. If you haven't used those cells and you use a reputable cell supplier then you are fine.

CRN: Why were some vendors affected and others not?

Patel: If a vendor does not have a component that is part of the recall they have no issue. Any OEM notebook supplier that hasn't used the main component that failed then they have no issue.

CRN: For VARs servicing mobile workers is there an opportunity to sell users better batteries?

Patel: It's not really an upgrade opportunity. The main driver of upgrades would be amp/hour capacity. 2.4 amp/hour cells is the standard of any tier one or two supplier. As far as upgrading capacity, we won't have that. We will have something close to it or a little better. The question is: Do we have product that is safe that we can give to a solution provider or consumer in the wake of them waiting 70 to 90 days? Yes we do.

CRN: What is your message to VARs that are grappling with this shortage?

Patel: We have about 10,000 VARs. We sent them emails saying if you have an issue call the vendor but if you still need a replacement here are all the models affected and here is the replacement Battery-Biz part numbers that we have in stock that are free of the recall. That message has gone out. We work closely with all the OEMs. They have to work this out and they will do it. We are not looking to make money made on someone else's misery. That is not our philosophy. But we would like to do the right thing for the consumer.

CRN: Are we going to see more battery recalls going forward?

Patel: I am not a betting man. I would hope no. It is very hard to tell. This recall may be as small as a very few incidents but they have to go back and forward from the time they think it has happened. So the recall may be much bigger than it needs to be, but that is ethically what you have to do to sleep at night. You hope there is no more.

CRN: Battery-Biz has been in business 18 years. Have you ever seen anything like this and what is the ultimate lesson learned from your perspective?

Patel: Quality has got to be the driver, not cost. This does not mean in any way, shape or form that Sony, Apple or Dell does not have quality. In all processes of battery making we have to be sure that quality is paramount.