Dell has confirmed that it taking on the mobile sector creating a new communications division that will develop portable devices. The group’s focus will cover handsets to portable computers with embedded wireless chips.
The new mobile division will be headed by Dell’s current consumer division head Ron Garriques. He is formerly a Motorola executive.
As part of the company wide restructure Dell will also merge its consumer and small- and medium-sized business groups. The combined consumer and small-business division will be led by Steve Felice, who now runs small business.
Dell has struggled in the PC market and has been looking at ways of diversifying its business. During its most recent quarter it suffered a 54% drop in profit with a 15% revenue decline.
The confirmation of the creation of the new unit follows Dell’s announcement in August to sell smart phones and other mobile devices with wireless partners.
Dell is selling a smart phone with China Mobile and also plans to sell through a Brazilian unit of America Movil by year end.
Meanwhile 3M has also announced that it will form a new division that will focus on mobile electronics but not handsets.
The company said the new division will include its line of mobile projectors and projection screens, privacy and protection films, and other accessories.
The new division will consolidate 3M's Projection Systems Department and its Specialty Display Products business unit of the Optical Systems Division.