Cramer: This Sector Just Isn't Working

Tablet plays aren't working, Cramer said Friday.

"It looks like a lot of the tech stocks were marked up at the end of the quarter, I think," Cramer said, adding that investors are taking profits, as the averages soar to new highs. In addition, there is some concern about a glut in tablet devices.

Two weeks ago, some investors thought Apple's iPad had become so popular that consumers were disproportionately buying the device, leaving an excess of competing tablets on store shelves. That glut sent shares of companies involved with tablets down, including SanDisk , Cypress Semiconductor and Cirrus Logic .

Things changed when Apple experienced supply chain problems as a result of the natural disasters that struck Japan. After all, several key components that go into the iPad are made by Japanese companies. Cramer thinks tech stocks will be held down so long as tablet glut concerns persist.

Meanwhile, Cramer said as wireless providers switch from 3G to 4G, telco companies are also struggling. He thinks this will continue until the transition is complete.

Companies offering cloud-based services are doing well, however. Red Hat saw shares climb Friday.

When this story was published, Cramer's charitable trust owned Apple.

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