Dell Contradicts Itself

About the batteries recall:

Dell blames the explosion of Laptops on Sony. They say that they "know exactly why there was a problem. Sony had contaminated its cells in the manufacturing process. The batteries were contaminated and were no good no matter what you did with them". One must assume that Dell discovered this problem after there were some (espectacular) explosions.

But then, the question remains: Why did all the explosions occurred with Dell laptops but not any other brand that also uses Sony batteries?

Was it bad luck? I don't think so. I think that more Vaio computers alone use Sony batteries than Dell, H-P is also a customer. Thus the fact that the explosions clustered in Dell laptops to a significant degree demonstrates that there is something wrong with Dell's usage of those batteries.

What is Dell doing? accepting their part of the responsibility for this mishap? No. They keep playing the game of blames, lies, and fraud that got them in the hole. It is not only I who is claiming this, the SEC has its doubts and has been investigating Dell, in California, a class action began against Dell. I wholeheartedly advise to read this filing because this may be history in the making. [The link as been corrected, thank you anonymous commentator]

Before going on with the class action, I want to tell an anecdote: Early in February I took bearish positions on Dell, fully aware of all the many problems that have become so patently evident these weeks, and by the way, I also participated very actively in the Dell message board under my former nick. Thus Dell's financial manipulation got to hurt the profits I should have made on that company. I am not angry at the money I didn't win, on the contrary, I feel vindicated because my calculations were rigth. But I still think that Dell is a company that deserves the severe punishment of bankruptcy. It doesn't matter that it now sells AMD processors, its products still stink big time, their customer service is customer disservice, they keep cooking the books, they keep applying smoke screens and mirrors to distract the observers off their problems, they still don't do any research and development but only screwdriver assembly and rebranding of Logitech, EMC, Lexmark, etc; no innovation, they have an absurd book value multiplier, and they still hide from everyone not to face tough questions. Have you noticed how similar Dell's and Enron's logotypes are? --- InHell, Dellron, Dellusionals...

The thread of Dell badmouthing AMD is long. Incredibly, they now solve it with a simple: "We were overconfident in Intel and underestimated AMD".

If you want to know more about the inside of Dell, you may follow this link to a fantastic thread initiated by a Dell insider, take your time and digg.

It is a shame that I didn't write much about Dell for the blog, but Syndrome did:

About the "WeekX", and remember that Dell is hiding from everyone, there are so many questions not answered... The used to provide guidance, not anymore. They pumped in Febraury's Conference Call/Earnings Report their super duper Analysts Meeting in April, they deflected tough questions by delaying them to April, meeting which was postponed to September (this month), which was recently cancelled... The links and details at Syndrome's.

Note: For explanations about why I call Sharikou "Syndrome", refer to this article, a very good one