The company, credited with perfecting the "built-to-order" personal computer business, will look for its "second act" in order to re-emerge as a legitimate tech power. But anyone believing Dell has learned anything over the past five years is sure to be disappointed.
Now, I do know it's not that uncommon for once-dominant tech companies to fail and then resuscitate themselves for a second chance at growth. Take, for instance, Apple (AAPL), which was struggling to survive in a PC-dominated world led by Microsoft (MSFT). Today, Apple is the largest technology company in the world.
However, unlike Apple, which executed its recovery by shedding unprofitable businesses and entering new markets, Michael Dell seems convinced the company's current plan, which has never worked, is still the best course to take.Last week, while discussing the company's future in an appearance on CNBC's "Squawk on the Street," an excited Michael Dell stated, "We're really focused on our customers and building out end-to-end solutions." Pardon my pessimism, but this is precisely the jargon that's been used in every Dell conference call over the past five years. (GOOG). On some levels, this recognition deserves credit, as cowardly as it may be.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts