Dell Organizes Communications Unit

Showing it’s serious about smart phones ,Dell Inc is forming a new business unit focused on communications and mobile phone devices, the second reorganization for the personal computer maker in the past year.

The new communication solutions unit will be led by Ron Garriques, the former Motorola Inc executive who was head of Dell consumer business. It had announced last month that it would start making cell phones.Dell officials confirmed that the consumer group will be folded into the small and medium business group run by Steve Felice.

Dell started selling its first smartphone at the end of November in China and Brazil only. The new unit run by Garriques will develop hardware and software for phones and other mobile Internet devices.

Dell has recently fallen even further behind its once-lofty perch as the world’s biggest producer of PCs. It is now No. 3 behind Hewlett-Packard and Acer, both of which offer consumers computers and smartphones. The company is, like most consumer hardware makers, increasingly moving to smaller mobile computers like smartphones and laptops as the desktop market has cratered.

Losing market share in PC market, the company has been focused on profitability as it aims diversify its revenue base into higher-margin offerings.

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