Dell Must Get In Takeover Mode

There's also plenty of technology that could be incorporated into Dell's existing notebooks to make them unique. The Preface technology developed by PortalPlayer (now part of Nvidia(NVDA Quote)), which integrates a small LCD screen into a notebook case, is an example of a feature that can make a PC stand out from the crowd.

Chirag Vasavada, a hardware analyst at T. Rowe Price, which owns Dell shares, says a more deal-happy Dell might not be a bad thing.

"From an investor perspective, I want to see that cash deployed in a way that generates the most return on invested capital," says Vasavada. "If they can do a deal where they can generate excess returns relative to their cost of capital, great. If they can't, give me the cash back."

But Vasavada isn't convinced that Dell needs to come up with the next great gadget to succeed in the consumer market.

"People thought their products were dull and boring," says Vasavada. "They just need to close the gap and be competitive. They don't have to differentiate."