Apple's Problems Continue: Will Replace Overheated iPods in Japan (AAPL)

Apple's AAPL product quality took another hit Wednesday, as the company announced in an online statement that it would replace all overheated iPod Nanos in Japan. The agreement extended an earlier offer to replace faulty batteries. According to a Reuters report, "The concession on Tuesday came after Japan's trade ministry put the world's largest technology company under scrutiny, ordering it to publish an "easy to understand" statement on its website explaining how users of the devices could receive replacement batteries and obtain advice." The first generation iPod Nano (produced between 2005 and 2006) has been linked to 60 incidents of overheating in Japan, including four cases of minor burns, according to the Ministry of Economy, Trade and Industry (METI). Apple described the incidents as "very rare." "We've worked closely with METI to make sure first-generation iPod nano customers who are concerned with their battery have the latest information," U.S.-based Apple spokesman Tom Neumayr said on August 6. The iPod problem only extends Apple's recent product quality issues. Its newest iPhone model has been hammered by critics for reception issues linked to its external antenna. Apple shares have retreated considerably from June highs of $274. Apple stock is down 3.5% today, to $250.34.