“Dell Inc. hired Motorola Inc.’s Ron Garriques to run its consumer business, the second appointment this week as founder Michael Dell seeks to revive sales,” Connie Guglielmo reports for Bloomberg. “Garriques, an executive vice president who led Motorola’s mobile-phone business, will start Feb. 19 at the world’s second- largest personal-computer company, Round Rock, Texas-based Dell said in a statement today.”
“For Motorola, based in Schaumburg, Illinois, the defection steps up pressure on Chief Executive Officer Ed Zander. Profit margins have been eroded by competition from low-priced handsets, the stock dropped 14 percent in the past year, and billionaire shareholder activist Carl Icahn is pressing for a bigger buyback,” Guglielmo reports. “Dell shares rose 1 cent to $24.39 at 4 p.m. in Nasdaq Stock Market composite trading.”
MacDailyNews Take: Wow. Garriques sure can move the market.
Guglielmo continues, “One of Garriques’s first challenges may be to redesign the products, analysts said. At Motorola, he helped create and sell the half-inch-thick, all-metal Razr, a fresh design that won the handset maker customers from Nokia Oyj. Mobile devices account for two-thirds of Motorola’s revenue. Dell’s products are ‘homely,’ said Charlie Wolf, an analyst at Needham & Co. Inc. in New York.”
“For Motorola, Garriques’s defection leaves Zander with a hole in the top ranks just as he’s looking for another product to replicate the success of the Razr, which has been on the market for two years,” Guglielmo reports. “Motorola has a history of getting into trouble when its top team gets smaller, said James Post a management professor at Boston University. ‘This is another hollowing-out of Motorola’s senior management team at time when the company faces stiff competition,’ Post said.”
Full article here.
When you flee one sinking ship is it wise to hop aboard another sinking ship? Perhaps if you think it’ll take a little longer to sink, it’s better than the alternative, we guess.
It doesn’t matter if Dell hires Jonathan Ive to design their boxes. It’s the OS, stupid.
Dell offers nothing unique and no pretty cases are ever going to be able to cover up that fact. And Garriques is a communications product line manager with an electrical engineering background, not a designer. Maybe Mikey plans to take on Apple’s iPhone with a Dell DJ Phone? That went so well last time, he’s probably all excited to ramp up.
What would we do if we ran Dell? We’re so glad you asked. After begging Steve Jobs to license us Mac OS X and being mocked or just plain ignored, well, we’d shut it down and give the money back to the shareholders.
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