Nokia to Replace Malfunctioning Phone Chargers

("=UPDATE: Nokia To Replace Malfunctioning Phone Chargers" published at 0957 GMT misstated the party who will take the economic consequences of the exchange program in the fourth paragraph. The correct version follows:)

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DOW JONES NEWSWIRES

Finnish mobile phone maker Nokia Corp. (NOK) Monday said it has started a program under which consumers can exchange chargers, which risk causing electric shocks, for free replacements.

The Nokia-branded chargers, which are manufactured by a third-party supplier, so far haven't caused any incidents or injuries, the handset maker said.

Nokia press spokesman Thomas Jonsson told Dow Jones Newswires that around 14 million chargers may be replaced under the program.

The supplier, Chinese-based BYD, will take the economic consequences of the exchange program, he said, but added that it is yet too early to estimate the costs.

Nokia said the chargers' plastic cover may come loose, thus exposing the internal components and potentially causing electric shocks while the charger is plugged into a live socket, adding that it identified the potential problem during a routine quality control.

The chargers are the AC-3E and AC-3U models, manufactured between June 15 and Aug. 9, 2009, and the AC-4U model, manufactured between April 13 and Oct. 25, 2009.

At 0943 GMT, shares in Nokia were up 2% at EUR9.02, against a 1.8% rise in the wider Helsinki market.

Company Web site: http://www.nokia.com

-By Gustav Sandstrom, Dow Jones Newswires; +46-8-5451-3099; gustav.sandstrom@dowjones.com

(END) Dow Jones Newswires

11-09-09 0527ET