Compaq recalls flagship computers as bugs strike Special factory set up in Scotland to repair power and memory problems in Elite notebook: [FINAL Edition]

Compaq Computer Corp is in the midst of recalling tens of thousands of its flagship LTE Elite notebook computers, following problems with bugs in the memory and faulty power supply units.

Compaq has set up a special production line at its factory in Scotland to handle repairs. The company said yesterday that the cost of the programme would not materially affect earnings. Nor does Compaq expect any shortage of its Elite models, since it has clean versions on hand to swap for the stock of recalled machines.

The move by Compaq is yet another example of the problems with bugs faced by computer companies, in an environment where product cycles are becoming ever shorter.

Earlier this week Intel Corp agreed to replace its flawed Pentium chips, following last week's move by IBM to suspend...