Dell hires Motorola Executive for its Consumer unit

Dell Inc. on Friday announced that it hired the Executive Vice President of Motorola, Inc. and President of the company's Mobile Devices business, to head the computer maker's consumer business, in order to revive the company sales.

Ron Garriques, the head of Motorola's most important division, yesterday resigned from the company to pursue his Presidential role in Dell's consumer business, becoming the second high-profile executive, hired by Dell this week, after Solectron Corp. Chief Executive Michael Cannon, who was appointed as head of global operations.

Garriques, 42, will become president of the world's second-largest computer maker's newly created global consumer division, effective February 19. New President will be responsible for all of Dell's consumer products, including desktop and notebook PCs, software and other devices, and product design and sales.

With the new leader, Dell hopes to expand sales in developing markets such as China and India. The Round Rock, Texas-based computer-hardware giant, which lost the top spot to Palo Alto, California-based Hewlett-Packard Co. last year, is trying to reverse laggard sales and diluting profit margins.

According to Brent Bracelin, an analyst at Pacific Crest Securities, Dell’s latest appointment is excellent for the benefit of the company and apparently is the first step of Dell’s efforts in rebuilding its consumer franchise.

Dell founder Michael Dell, who took back the CEO title from Kevin Rollins last month, said Garriques' responsibilities would include boosting sales in consumer markets outside the United States.

"As the number of people online doubles from one to two billion over the next several years, the majority of new consumers will be located in fast-growing and emerging markets," CEO Dell, 41, said.

Motorola, based in Schaumburg, Illinois, declined to comment on whether high-profile Motorola executive was leaving as a result of the missed profit forecasts.

The second largest mobile phones maker said Garriques, who had joined Motorola in 1998 and took over as head of the company's mobile devices business in September 2004, will be replaced by Ray Roman, senior vice president of global sales, and Terry Vega, senior vice president of global devices, on an interim basis.

Shares of Motorola closed Friday trading up 2 cents at $19.26 on the New York Stock Exchange. Dell shares closed up 1 cent to $24.39 in NASDAQ Stock Market composite trading.