Dells acquisition of Alienware was a bit surprising but not illogical. Dell will now have an high-end line (XPS), a higher-end line (specials such as the $9930 XPS Renegade) and Alienware. Dell has over the years seen the competitors merge and then vanish, they have not ever made any major acquisitions.

Alienware will loose some street credibility but will gain financial stability and access to the best support and manufacturing.

Way back in 1995 I was invited to Dell’s manufacturing facilities in Ireland and met with their top management. I told them that they should create a high-end brand. And a couple of months later they did. Not that my input made any difference, but the high-end segment must have made them a ton of money over the last 10 years. This is were margins are higher although volume is low.

Dell+Alienware=Dellienware

This entry was posted on Thursday, March 23rd, 2006 at 2:05 pm and is filed under Mergers, Spoofs, Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.