It’s Official: Dell Beams Up Alienware
March 24, 2006Dell Inc. confirmed Thursday that it had acquired boutique PC vendor Alienware, a move that will add some zing to the company’s image.
Although Dell’s acquisition was widely anticipated, Alienware chief executive Nelson Gonzalez said that his company will remain a wholly-owned subsidiary of Dell, continuing its own brand, design, sales and marketing, and support. Terms of the deal were not disclosed.
For consumers, the purchase will mean that Alienware will now access Dell’s well-known supply-chain efficiencies, ideally reducing wait times for new PCs that Alienware executives said have swelled to as much as a month or more. Interestingly, the deal also means that a PC containing a processor from Advanced Micro Devices will finally contribute to Dell’s bottom line.
Gonzalez said that to expand Alienware’s product line with more, highly-tuned boutique products, the company needed more resources. Although the company sells its PCs to customers in Japan, Korea, and Asia, Alienware didn’t have the cash to fund the worldwide expansion it needed, he added.
The Dell-Alienware deal was first "reported" by a blogger and rival, VoodooPC chief Raul Sood, who predicted that a then-rumored deal would make sense. "Why the potential for a Dellienware and not another? Alienware is widely considered to be the volume leader in gaming, they have scale," Sood wrote.
Somewhat ironically, Dell announced the Alienware acqusition on the same day as it released the Dimension XPS Renegade, its own boutique PC sporting a ramped-up design, four graphics chips, an overclocked CPU, even a physics accelerator – and a price tag above $9,000, aimed at the well-to-do enthusiast that Alienware, Falcon Northwest, and its competitors covet. Unsurprisingly, Alienware PCs will also use the Ageia physics chip.
via pcmag.
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