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Dude, You're Getting an Alienware (cont'd)

kcnychief

█▄█ ▀█▄ █
Political User
#1
Since this frontpage article was such a hot topic, see here - I wanted to post an update, which further points that is NOT going to happen...

A local Dell spokesman has effectively denied rumours that it's acquired rival PC vendor Alienware, suggesting that all speculation should be taken "with a grain of salt".

The speculation, which has since spread like wildfire across the Web, began when Rahul Sood -- CEO of Canada-based OEM PC vendor Voodoo PC -- posted his thoughts on why a Dell takeover was likely to his personal blog.

"The PC gaming market is threatening Dell's 'perceived technology leadership' - and ultimately the consumer space. The Alienware brand is cooler than Dell, and perhaps a likely candidate for Dell to take over based on size alone," said Sood.

Sood's speculation was corroborated by an anonymous source "at a high-end vendor", who told CNET.com's Rich Brown that "the deal has been done...[and] his company has received an influx of resumes from Alienware employees."

Alienware is yet to deny the claim, but the potential acquisition has been seen as a positive sign by many commentators since it would allow Dell to completely penetrate the gaming market, a feat that's proved difficult for the vendor that's struggled to shake its corporate image.
http://www.cnet.com.au/desktops/pcs/0,39029439,40061082,00.htm

EDIT: Ack, now this!

While no word has been officially released from either Dell or Alienware, we heard from a reliable source this morning that the purchase has indeed gone down. Speculation began on March 5 after a blog post by Voodoo PC CEO Rahul Sood. The new source, a contact at a high-end vendor who requested anonymity, claims that two of his company's suppliers confirmed that the deal has been done, and he also claims that his company has received an influx of resumes from Alienware employees.

An Alienware PR representative did not deny the claim but instead forwarded us a prewritten statement from the company that said: "At this time, Alienware will not comment on any speculative stories or rumors concerning Dell and Alienware's association. While we do believe that news stories like this are ultimately a strong positive reinforcement of the Alienware brand and the company's success, we will not comment on speculation or potential future events. As always, Alienware is committed to offering consumers and businesses with the best high-performance, innovative PC products on the market and we remain manically focused on that goal."
http://reviews.cnet.com/4531-10921_7-6464030.html
 
Last edited:

Steevo

Spammer representing.
Political User
#4
For those of us that build and woudn't be caught dead with a Hell or Alienation, it means that more geek wannabe's can but a Alienware-Dell with terms to brag about.



Then whine about being shot down on CS or the like.
 

Sazar

F@H - Is it in you?
Staff member
Political User
#7
Well it's official.

Purchase completed.

I still think its a retarded move but what do I know :)

Alienware will remain a stand-alone business, keeping its own assets in its entirety.
 
#12
The signal-to-noise ratio is pretty low, but then again, it's hard to find many places on the web where that's not the case these days.

You do see some good stuff showing up in the digg feed every so often though, so it's worth keeping an eye on. I just skim through the garbage, and sometimes, I get a good laugh out of it like I did today. :D
 
#15
Sazar said:
I still think its a retarded move but what do I know :)
The acquisition is kinda weird at first glance but when Alienware starts getting parts at Dell's volume pricing levels the profit per box will double or more. That's a cash cow product line for Dell where unit margins are painfully low.

It also gives Dell an AMD line for the "high end gamer, AMD only crowd" while still staying an "Intel only shop" so they keep the advertising kickbacks. If Intel lets Dell get away with this defection then the concept of "wholly owned subsidiary being allowed to use non-Intel" can be expanded to the server line where demand for AMD based products is cutting into Dell's sales.

This minor buyout pushed AMD stock prices up and Intel down. The semi analysts are seeing it as a fishing expedition by Mr Dell. If Intel lets it pass Dell gets cheaper CPUs with no pain and augments it's market share by opening up the AMD preferred houses. If Intel balks, Dell demands a better pricing deal to stay loyal. Nice move for Dell. In either case Intel suffers.
 

Sazar

F@H - Is it in you?
Staff member
Political User
#16
LeeJend said:
The acquisition is kinda weird at first glance but when Alienware starts getting parts at Dell's volume pricing levels the profit per box will double or more. That's a cash cow product line for Dell where unit margins are painfully low.
Unit margins are not low :)

It also gives Dell an AMD line for the "high end gamer, AMD only crowd" while still staying an "Intel only shop" so they keep the advertising kickbacks. If Intel lets Dell get away with this defection then the concept of "wholly owned subsidiary being allowed to use non-Intel" can be expanded to the server line where demand for AMD based products is cutting into Dell's sales.
This, and some of the r&d that alienware has invested in is the only benefit I see, besides the brandname.

This minor buyout pushed AMD stock prices up and Intel down. The semi analysts are seeing it as a fishing expedition by Mr Dell. If Intel lets it pass Dell gets cheaper CPUs with no pain and augments it's market share by opening up the AMD preferred houses. If Intel balks, Dell demands a better pricing deal to stay loyal. Nice move for Dell. In either case Intel suffers.
Intel has been hurting for a while and the reduced stocks are also due to the increased market share of AMD in various segments.

I do expect Intel to make a nice bounce-back with Conroe and Merom though :cool:
 

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