Biz People: Rollins Out, Dell Back in Saddle

Michael Dell (above right) replaced Kevin Rollins as CEO of Dell Inc on Wednesday as the No 2 PC maker struggles with missteps in the US consumer market and market share losses to Hewlett-Packard Co.

The company warned this quarter’s results would fall below analyst estimates, in the latest sign of the challenge it faces from HP and tough pricing competition in a cutthroat industry.

In one of the best-known technology start-up tales, Dell started the company in 1984 in his university dorm room with $1,000, and made it a PC powerhouse. But results have been uneven since Rollins took over in July 2004, analysts said.

News of Dell’s return lifted the stock by nearly 5 percent, in hopes he would reinvigorate the company.

Yet Dell gave no specific plan for how to mold it into what he calls “Dell 2.0″, and he and Rollins have long said they ran Dell together.

Analysts blamed Rollins for Dell’s slowing growth, Kay added. Wall Street “has been calling for his head for a long time,” he said of Rollins, 54, who also left Dell’s board.

(c) 2007 China Daily; North American ed.. Provided by ProQuest Information and Learning. All rights Reserved.