Dell launches new mobile business unit

New unit will focus on producing mobile and other portable devices

Computing hardware giant Dell has announced it is creating a new business unit focused specifically on communications and mobile devices, according to new reports.

The firm’s new communications solutions unit will be headed up by ex-Motorola exec Ron Garriques, former head of Dell’s consumer business, said the Wall Street Journal.

It will primarily be focused on building mobile phones and other portable devices.

Under the new structure, the consumer division will be combined with the small business computer unit, and headed up by that division’s current president, Steve Felice, the report said.

The move is seen as part of chief executive and founder Michael Dell’s attempt to diversify the company into a wider range of technology products and services. Earlier this year, for example, the firm bought IT services giant Perot Systems for a massive US$3.9bn.

Dell has struggled though reported a whopping 54 percent drop in profit for its most recent quarter – a 15 percent revenue decline.

At the time the firm said he biggest drop in demand was from large corporate buyers, which make up a sizeable chunk of its customer base. Small and medium sized company sales revenues rose five per cent on the quarter, but were down 19 percent on the year.

The company is expecting a strong fourth quarter in the consumer market, however, after flat sales in the last quarter.