advertisement
 
 Print    Email     Bookmark     Share

Dell to acquire Alienware



In fact, it's so well-known for that strength that after rumors of the deal first surfaced some analysts said a company like Alienware would not be a good fit with Dell. Alienware specializes in exotic designs and colorful systems that take longer to build than the standard building blocks used by many of Dell's PCs.

But Dell's efficiency will not hurt Alienware's product development process, Gonzalez said. "We're not going to sacrifice the design of a product for the sake of the efficiency," he said.


Will there be a future for Alienware parts in Dell XPS-branded notebooks?
Alienware will also continue to offer PCs that use processors from both Advanced Micro Devices and Intel, he said. Dell has an exclusive relationship with Intel, but that will not affect Alienware's relationship with both chipmakers.

"I can't speak for (Dell's product plans), but from our vantage point, nothing has changed there," Gonzalez said.

Analysts had been skeptical about the deal when it was first rumored, and some remained skeptical after it was announced.

"I still think it's a bad idea, and a bad fit," said Stephen Baker, an analyst with NPD Techworld. Alienware's customers buy from that company in part because of its image as a technology-driven company that understands the needs of gamers, while Dell is viewed by those customers as a stodgy corporate supplier.

Even though Gonzalez said Alienware will operate separately and not promote Dell on its site, "Alienware customers are smart enough to understand" that Dell will own the company, Baker said.

The deal also could mean that Dell has to rethink its consumer PC strategy, said Roger Kay, principal analyst with Endpoint Technologies Associates. The company has sunk a lot of effort into building its XPS lineup of high-end desktops and notebooks for gamers and multimedia enthusiasts. Now, it looks like those systems compete with Alienware in certain areas, he said.

Alienware sells very powerful and very expensive PCs to the top tier of the gaming market. Dell, on the other hand, has a stronger identity with casual gamers who want a good PC but don't want to pay Alienware prices. Both companies have recently tried to appeal to gamers that fall in between those two groups, with Alienware reaching down and Dell reaching up, Kay said. It's unclear how those strategies will continue.

 

 

    Talkback
There are currently no comments for this story.
To post comments, you need to become a member. It's FREE.
advertisement