Dell hires executive to head new unit

Dell Inc. founder Michael Dell on Wednesday made his first major change since retaking leadership of the computer maker two weeks ago, creating a new global operations group aimed at reducing product costs.

The unit consolidates manufacturing, supply chain and procurement activities, Round Rock, Texas-based Dell said. It will be led by Michael Cannon, the president and chief executive of Solectron Corp. He will join Dell on Feb. 26.

Dell, who reclaimed the title of CEO on Jan. 31, is shuffling executives and making changes to revive sales and profit.

After winning the PC market lead in 2003 by undercutting competitors, the company saw its price advantage erode as rivals including Hewlett-Packard Co. copied some of the manufacturing and supply chain innovations that Dell pioneered. Hewlett-Packard won back the PC market lead last year.

Cannon, 54, headed Solectron, the No. 2 maker of electronics for other companies, for the last three years and has more than 25 years of manufacturing experience, Dell said.

Shares of Dell rose 29 cents Wednesday to $23.90.