The justification for this deal comes from the company's most recent earnings report where it continues to show considerable weakness in its mobility division -- a 19% decline year-over-year. It also got confirmation that its PC business is running "out of memory" and a "reboot" is not possible. That segment fell 9%. Even more concerning is the fact that revenue actually dropped 14% annually when combined both desktops and laptops.
Mobile devices are winning and Dell needs to get in the game.
Gone are the days of PC domination in the mid-to-late '90s. This is a new era where the leaders are now Apple, Google, Amazon and
. It was precisely this reality that I believe caused Microsoft to want to forge a partnership with
while also recently announcing its Surface tablet.
For these reasons, buying RIM makes more sense for Dell than any further acquisitions in software and services that will add little to its bottom line while only prolonging its irrelevance.
The company has spent billions over the past several years acquiring companies that have done little to lift its profile above boring. It is time that it realizes that if it truly wants to matter, it needs to do something radical.
Dell needs to buy RIM and get in the game. While it will not guarantee that it will be able to beat Apple and Google in the device sector, at least it will matter again.
At the time of publication, the author was long AAPl and held no position in any of the stocks mentioned
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.