Donna Fuscaldo wrote a quick and interesting Wall Street Journal article Michael Dell Stands By CEO Rollins (subscription required).
Mr. Dell called his hand-picked successor an "outstanding executive" that has his full support. According to Mr. Dell, characterizations that Mr. Rollins is to blame for Dell's recent challenges are "inaccurate."
Over the past year, Dell shares have fallen about 39%, in part because the world's largest PC maker as measured by units shipped has seen its sales and profits slow and competition ramp up from rivals such as Hewlett-Packard Co. The company also recently announced a battery recall, involving millions of laptops, because of a potential fire hazard.
Mr. Rollins said the computer maker was re-evaluating "every element" of its business model. The company will role out more products, grow in the emerging markets and place a broader emphasis on its services business. He noted Dell plans to hire 60 design professionals to develop sleeker looking PCs for the company.
Considering that both executives work closely together, I have to agree with Michael Dell. One cannot blame Kevin Rollins without blaming Michael Dell.
But what I do find interesting is that Dell plans to 60 design executives. Did we not just learn in a recent Barron's article that corporations compose 80% of Dell's sales and that corporations do not buy on design? See my earlier article Has Dell Lost It's Way?. Perhaps design does matter after all?
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