Dell launches new mobile business unit

Michael Dell is trying to reinvigorate his company

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

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

The unit will focus primarily on building mobile phones and other portable devices.

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

The move is seen as part of Dell chief executive and founder Michael Dell's attempt to diversify the bubiness into a wider range of technology products and services. Earlier this year, for example, the firm bought IT services giant Perot Systems for a huge $3.9bn (£2.38bn).

Dell has struggled though a whopping 54 per cent drop in profit for its most recent quarter, and a 15 per cent revenue decline.

The company said at the time that 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 per cent on the year.

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