Garriques will leave Dell at the end of January after nearly four years on the job. Prior to Dell, Garriques had been the mobile device chief at Motorola until early 2007.
via Dell’s Device Plan Reboots, Exec is Out – TheStreet.
Here is how Ed Zander (the former CEO of Motorola) described Garriques soon after he left the company.
…Zander didn’t have a lot of good to say about the former team running Motorola’s cell-phone business. “The management in mobile devices made calls that were dead wrong,” he said, referring not so much to massive price slashing on the popular Razr as to the slow-footed move into so-called 3G (for third-generation) multimedia phones. That particular slam was directed at a young guy named Ron Garriques, who headed that division, which is most of Motorola’s business today, before high-tailing it out of Motorola just before the you-know-what hit the fan. Garriques today is part of the crack team turning around Dell.
His move to Dell caused quite a lot of speculation that Dell was going to be a serious contender in the mobile device space (despite their previous failures).
Apparently the launch of the Android-powered Streak was not enough to cement his future at Dell.
Once the pride and joy of the world’s largest computer systems builder, consumer products now make up just 18% of Dell’s total sales. That’s probably a good thing in the long run, because this segment is notoriously margin-poor when compared to the less price-sensitive corporate computing market. I can’t blame IBM for giving up on consumers years ago, and I think Dell should follow suit.
via Make a Hard Left, Dell! (AAPL, CTXS, DELL, HPQ, IBM, MSFT, VMW).
That’s right. Flee upmarket Dell. Run, run.
Quoting from the gospel:
Step 2: Entrants grow and improve; incumbents choose flight. As disruptive attackers follow their own sustaining trajectories, they make inroads into the low end of the market or begin pulling less demanding customers into a new context of use. What happens when the disruptive entrant begins to make inroads? [...]
Incumbents naturally choose flight. What looks highly attractive to the entrant continues to look relatively unattractive to the incumbent. The asymmetric motivation leads to incumbents naturally fleeing the low end. They cede that market to the entrant. [...]
Remember, incumbents focus on delivering up-market sustaining innovations that allow them to earn premium prices by reaching undershot customers. They view flight as a positive development.