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Wednesday, March 22, 2006

Dell Aquires Alienware

Posted by Harsha

PC maker Dell today bought Alienware a boutique computer outfit in a move that would boost Dell position in the growing market for gaming PCs.

Alienware enjoys the same reputation with technophiles as do certain underground bands among music aficionados. Hard-core gamers and others who like computers with high-end graphics are proud to own machines unfamiliar to the common masses.

Mr. Pearson said Dell, will allow Alienware to operate independently, maintaining control of everything from development to pricing also here won’t be any Dell logos on Alienware machines. That will make the company stand apart from Lenovo, which added its name to IBM’s ThinkPads when it acquired Big Blue’s PC division

Regardless, the companies and the analyst all noted that Alienware’s and Dell’s core customers are as different as a racecar driver and a soccer mom would be in the auto market. Prices—Alienware’s desktops start at about $900, the same as Dell’s highest-end machine—aren’t expected to change immediately.

Dell’s strong connections with suppliers could help lower Alienware’s costs, which in turn could increase its profit margins.

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