Dell is to set up a new business unit surrounding mobile products as it tries to expand its presence in the communications market.

The newly formed communications solutions division will be responsible for developing mobile products like smartphones, said David Frink, a Dell spokesman.

"The focus will be on developing and bringing to market connected computing products and services through new channels of distribution; including telecommunications, cable, satellite and others," Frink said.

The company is ramping up its mobile focus as it tries to establish a presence in a market dominated by companies like Apple, Nokia and RIM. Dell last month launched its first smartphone, the Mini 3, which will be offered in Brazil and China. The company also offers low-cost netbooks through mobile carriers.

The new unit will be headed by Ron Garriques, who previously was president of the consumer group at Dell, where he was responsible for products like desktops, laptops and software. Garriques has past experience with mobile and networking companies such as Motorola and AT&T.

Dell is also merging the consumer and small and medium business groups into a single business unit. The division will be run by Steve Felice, who formerly ran the SMB unit. The reorganisation will help the company reduce costs, Frink said.