AP: [Transmeta-based] NEC Laptops Recalled

"Technically, the faulty batch of computer chips made by Transmeta Corp. that sparked a recall of 300 NEC Corp. laptops in Japan does not appear to be a big deal, analysts say. But, financially, it could have serious repercussions...."

"From investors to business partners to consumers, many will be watching to see how Transmeta handles the problem and whether it can make sure it doesn't happen again, said Linley Gwennap, a principal analyst of the Linley Group."

"'It's sort of like being on probation now,' Gwennap said. 'You have one problem, and people will be willing to still work with you. But if we see a series of problems, it'll be a real serious red flag.'"

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Related Stories:

• The Register: Transmeta bug may affect 13,000 Sony PCs (Dec 01, 2000)
• TechWeb/Reuters: Transmeta Confirms Recall Of Crusoe Chips(Nov 30, 2000)