UPDATE 3-Nokia to replace 14 mln phone chargers

Mon Nov 9, 2009 8:41am EST

* Charger covers could fall apart

* Says not aware of any incidents

* Supplier, China's BYD, to cover all costs

(Adds BYD statement, analyst comment, share)

By Tarmo Virki, European technology correspondent

HELSINKI, Nov 9 (Reuters) - Nokia Oyj (NOK1V.HE) is replacing 14 million cellphone chargers which it says could give users an electric shock.

The world's biggest mobile phone maker said its Chinese supplier BYD would cover the costs of recalling the chargers, for which handset makers normally pay around $1.

Shares in Nokia were 2.3 percent firmer at 9.04 euros by 1230 GMT and analysts said the impact on Nokia's brand would be limited.

"The plastic covers of the affected chargers could come loose and separate, exposing the charger's internal components and potentially posing an electrical shock hazard if certain internal components are touched while the charger is plugged into a live socket," the Finnish firm said.

Three models of charger - AC-3E, AC-3U and AC-4U - made between April and October this year would be affected. Nokia urged users to seek a free replacement (chargerexchange.nokia.com/).

BYD Co Ltd's (1211.HK) battery-making arm BYD Electronic (0285.HK) said it expects no material impact on its financial and operating conditions or its business prospects.

BYD has become an increasingly important supplier to Nokia over the last few years, helped by its wide offering -- from components to manufacturing services.

"We are not aware of any incidents or injuries relating to these three (models of) chargers," said Nokia spokesman Doug Dawson.

The defective chargers were not sold in Argentina, Australia, Brazil, Britain, Chile, China and New Zealand.

(Additional reporting by Eva Lamppu in Helsinki, Joanne Chiu in Hong Kong; Editing by Hans Peters)

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