Cramer: Memo to Michael Dell and Carl Icahn
NEW YORK (Real Money) -- Memo to Michael Dell and Carl Icahn: Walk away from Dell
After what I heard yesterday from all of the tech companies I follow, Dell is worth perhaps less than the $9 per share this whole fiasco -- this huge sideshow to the reality of this company and this industry -- started at.
First, if you listen to Intel
Attempts to revive it using the Microsoft Surface have failed already. That's what happens when you take a $900 million charge for a new product before it's even in distribution. That new device, important for the consumer business of Dell will, it sounds like to me, be off the shelves and gone this time next year.
Second, we know from Intel that there are no chips so exciting as to mean anything to most users, individual or the enterprise. Sure Moore's law could be alive, and the chips keep getting smaller and smaller. But unless you work at NASA and want to put a man on the moon, you don't need that power.
Yes, Intel says when it gets the new chips needed to power the ultra-mobile units that come out in the fall, maybe there will be a bump. But it is more likely that Lenovo will come up with some cheap device that will cut Dell's profit margins to shreds.
Basically, Dell is selling color TV sets at this point. That's right, big color TV sets, and not even the sexy flat panels, just the ones that Zenith, Admiral, JVC, and Philips used to make. The ones that they can't give away at Best Buy