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Battery shortage causes laptop price hike

Price increased caused by fire at battery plant

A fire at South Korea's second largest laptop battery manufacturing factory is being blamed for the increase in laptop prices.

The fire, which took place at LG Chem's Ochang plant earlier this month, contributed to a global battery shortage. Production has been halted and looks unlikely to resume for at least another two months. As a result, laptop prices have increased.

Computer giant Dell told Reuters it is working with other suppliers to ensure further price hikes do not occur.

"The industry is experiencing battery supply constraints because of these problems," Dell spokesman Jess Blackburn told the news agency.

"Therefore, pricing is being impacted by current availability. But we are working with our partners throughout our supply chain to reduce the impact on our customers."


Asustek and HP are among the other computer manufacturers that have been affected. Asustek expects around 40 percent of second-quarter shipments will be affected while HP has yet to determine the impact of the shortage.


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