Netflix, Inc. (NFLX), Intel Corporation (INTC): 1 Big Reason Why Carl Icahn, Others Might Be Overpaying for Dell Inc. (DELL)

“During Fiscal 2013, we experienced a difficult pricing environment for our client products. In particular, demand for our client products in emerging countries was affected as we saw a migration to lower-value offerings, where we are less competitive. Our results were also affected as customers shifted some of their demand to alternative computing devices, particularly in our Consumer segment,” the report confesses. [Emphasis added.]

Translation: We aren’t good at selling smartphones and tablets, which is a problem when you consider how important these devices have become:

Interestingly, this chart tells only part of the story. IDC also says tablet sales more than doubled last year in emerging markets, where Dell Inc. (NASDAQ:DELL) is weak. Smartphone sales rose 69% while overall device sales jumped 41.3% in these up-and-coming regions. Unlike Apple, Acer, Samsung, and many others, Dell isn’t cashing in on any of the growth opportunity.

For Dell Inc. (NASDAQ:DELL), time to hit “delete”
Valuation math notwithstanding — and, yes, there is a decent case to make that Dell Inc. (NASDAQ:DELL) is worth more than it trades for today — this isn’t a turnaround story in the making, and it may never be. Dell’s historic strengths may prevent it.

Meanwhile, tablets are becoming the computing form of choice, especially in the emerging markets. Private or public, from here on Dell’s relevance is inextricably linked to its ability to compete for and win non-PC customers.

I’d love to see it happen. I just don’t believe it will.

The article 1 Big Reason Why Icahn, Others Might Be Overpaying for Dell originally appeared on Fool.com.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple, Google, and Netflix at the time of publication. He also had a long-term call options position in Netflix. Check out Tim’s web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of Netflix, Intel, Apple, and Google. Motley Fool newsletter services have recommended buying shares of Intel, Microsoft, Netflix, Apple, and Google. Motley Fool newsletter services have recommended creating a covered bull call spread position in Apple.

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