BEIJING, Feb. 2 (Xinhuanet) -- Dell Inc. Chairman Michael Dell returned Thursday to the position of chief executive -- replacing former protege Kevin Rollins -- in an effort to reassert control and reverse the fortunes of the company he built from a start-up in his college dormitory room into one of the world's largest PC makers.

    Dell's renewed day-to-day involvement in the business may do little to solve the company's problems, at least in the short term. In announcing the shake-up, the company also revealed it expects its earnings and revenue for the fiscal fourth quarter ending this week to fall short of analysts' estimates.

    The company's downfall has taken place largely since Dell put Rollins in the CEO slot in 2004. Dell remained chairman of the board, a position he will continue to hold. In an interview, Dell largely declined to comment on Rollins's departure. Rollins couldn't be reached.

    "Kevin has been a great friend and colleague for many years and made huge contributions for the company during a critical period. ...I felt that it was a critical time for the company and having unified leadership would be the right approach," Dell explained. The 41-year-old executive added his role as CEO would be a permanent one, and not an interim measure.

    The management shake-up "doesn't change Dell's problems," said Ken Smith, director of technology research for Munder Capital Management. "Michael Dell or whoever you put in that role I think is going to struggle with the same issues."

    Dell's market share has fallen in recent years as customer preferences have changed and competition has become more intense. Much of the recent growth in PC demand has come from consumers buying laptop computers at electronics retailers like Circuit City Stores Inc. and Best Buy Co.

    Dell, which largely focuses on selling desktop computers to businesses, has missed out on the boom.

    Meanwhile, Asian rivals like Lenovo Group Ltd. of China and Acer Inc. of Taiwan have gained ground in the global market, and a resurgent Hewlett-Packard Co. recently surpassed Dell to become the world's largest PC maker in terms of units sold, according to some research firms.

    Dell said in the interview he didn't plan to change Dell's strategic model and would stick to selling PCs directly, adding that there are opportunities to innovate on the model.

    "Dell has always had a strength in its supply chain, and I think there is an opportunity to do even better there," he said.

    The computer maker has missed several sales or earnings projections during the past few quarters. Last year, Dell also had to recall several million defective batteries in laptop computers.

    And the company disclosed in August the Securities and Exchange Commission was looking into its finances. While the company has given few details, it has said the inquiry is related to "accruals, reserves and other balance-sheet items."

    The company delayed reporting its most-recent quarterly results, attributing the delay to the "complexity" associated with investigations by the SEC and the U.S. attorney for the Southern District of New York.

    In his role as chairman, Dell was at the forefront of some of the company's newest ventures, including its foray into the gaming market with its acquisition of Alienware Corp. last year.

    Chirag Vasavada, technology analyst for money-management firm T. Rowe Price Associates Inc., said Dell's return as CEO signals to Wall Street the company is serious about improving its performance. But Vasavada said that for its stock price to improve, the company ultimately needs to increase sales and profits.

    Nirav Parikh, an analyst with Los Angeles-based TCW Group Inc., a Dell shareholder, added that it was "somewhat obvious that there needed to be some changes at Dell."

    He said Dell would be closely watched to see if he follows through on his plans for reinvigorating the company.

    "He's been there all along, so what he is going to do is more important than just him taking control," Parikh said.

    (Agencies)