Dell surprisingly close one of its business units, Communications Solutions Group, which manufactures smartphones and tablets. The closure was announced along with the expiry of office Ronald Garriques, who heads the business unit.
According to information reported by the Wall Street Journal website on Thursday, November 18, the product business units are then transferred to all other business units. Dell said Ron Garriques will also remain with Dell to January 2010 and as a consultant until the end of 2011. Garreques Ron is a former Motorola executive who digaet Dell to develop consumer products business unit. Under his leadership, Dell managed to gain consumer market share, but never got a significant advantage.
Closure of the business unit is quite surprising at the time Dell was expanding from its core business has been selling the computer. Since Michael Dell returned as CEO in 2007, he directed the company to take the storage media market niche and consumer devices. However, unfortunately the Dell business in the consumer market has not been too successful and continues to lose money.
Dell has reported a total revenue in the consumer market of 2.9 billion U.S. dollars during the quarter ended July and the loss of 21 million U.S. dollars. Total revenue was down from 3.2 billion U.S. dollars from the previous quarter and relatively no increase compared to the same quarter last year.
Tablet Streak is the latest product business units. The launch was delayed a year. Despite high sales, Michael Dell was not satisfied. Then what will happen to consumer devices Dell? Dell spokesman said the closure of the business units such as mobile phones and other devices have evolved not just for the consumer market but also to the enterprise market and small and medium businesses. The merger will enhance the position of Dell products in all market niches. So, do not worry.