Dell purchases Alienware?

I just saw this in the morning paper and was totally surprised. Was
this in the works for a while? At least Dell will now get to
distribute AMD CPU's...although at a distance.

Allan

On Thu, 23 Mar 2006 18:08:25 -0600, Allan Parent
wrote:

I just saw this in the morning paper and was totally surprised. Was
this in the works for a while? At least Dell will now get to
distribute AMD CPU's...although at a distance.

It's been rumored for about a month now. I wouldn't be surprised
though if Dell cuts out the AMD-based systems from Alienware's
line-up. My opinion is that this is related more than anything else
to Dell kinda failing to achieve their goals with their XPS line, so
instead they're just buying out a company that makes similar products.
We'll see though.

-------------
Tony Hill
hilla underscore 20 at yahoo dot ca

Tony Hill wrote:
It's been rumored for about a month now. I wouldn't be surprised
though if Dell cuts out the AMD-based systems from Alienware's
line-up. My opinion is that this is related more than anything else
to Dell kinda failing to achieve their goals with their XPS line, so
instead they're just buying out a company that makes similar products.
We'll see though.

I highly doubt that's the case. Alienware wasn't big enough to be a
threat to Dell. I could see them buying out Gateway to shutter them
down for this reason. However, Alienware represents a chance for Dell
to get into AMD processors. In fact, it wouldn't surprise me if they
started encouraging Alienware to expand out beyond gamer PCs (they also
have a fledgling workstation business), and into servers. They've said
that Alienware will be operated as a wholy-owned subsidiary. This is
advantageous on two fronts, one for Dell, and one for Alienware. For
Dell, it means that they can sell AMD processors without Intel taking
away their subsidies. For Alienware, it means that they can continue to
offer the best technologies without respect to the parent's corporate
dogma.

Q: Much of the attention around this deal in the speculation leading up
to it centered on Intel (INTC) and Advanced Micro Devices (AMD). Dell
is so far an Intel-only shop, but it now owns Alienware, which uses
chips from Intel and AMD. Will being a Dell subsidiary cause you to
change the suppliers you use?

A: I can't imagine ever changing what we do. We will always offer what
is the best product. If that means we offer Intel, we offer Intel. Or
AMD or NVidia (NVDA) or ATI (ATYT). We are completely
supplier-agnostic. We've always been that way.

Can Alienware Keep Its Cool?
http://yahoo.businessweek.com/techno...324_968310.htm

On 24 Mar 2006 08:22:10 -0800, "YKhan" wrote:

Tony Hill wrote:
It's been rumored for about a month now. I wouldn't be surprised
though if Dell cuts out the AMD-based systems from Alienware's
line-up. My opinion is that this is related more than anything else
to Dell kinda failing to achieve their goals with their XPS line, so
instead they're just buying out a company that makes similar products.
We'll see though.

I highly doubt that's the case. Alienware wasn't big enough to be a
threat to Dell. I could see them buying out Gateway to shutter them
down for this reason.

Who said anything about shuttering them? I'm talking about basically
replacing their XPS line with Alienware's product line.

-------------
Tony Hill
hilla underscore 20 at yahoo dot ca

Tony Hill wrote:
I highly doubt that's the case. Alienware wasn't big enough to be a
threat to Dell. I could see them buying out Gateway to shutter them
down for this reason.

Who said anything about shuttering them? I'm talking about basically
replacing their XPS line with Alienware's product line.

Yes, *that* scenario I can see. But of course the reason Dell would
want to do that is simply because their XPS line was not selling well,
because it was all Intel. Nobody serious about games goes with Intel at
this moment. So I don't see Dell buying Alienware to sell gaming PCs
and then having them remove their AMD products, because that would put
their Alienware line in the same boat as their own XPS line.

Yousuf Khan

On 25 Mar 2006 12:06:03 -0800, "YKhan" wrote:
Tony Hill wrote:
I highly doubt that's the case. Alienware wasn't big enough to be a
threat to Dell. I could see them buying out Gateway to shutter them
down for this reason.

Who said anything about shuttering them? I'm talking about basically
replacing their XPS line with Alienware's product line.

Yes, *that* scenario I can see. But of course the reason Dell would
want to do that is simply because their XPS line was not selling well,
because it was all Intel.

Or perhaps simply because it was a Dell? Perhaps Dell just hadn't
figured out how to market the things towards gamers?

Nobody serious about games goes with Intel at
this moment. So I don't see Dell buying Alienware to sell gaming PCs
and then having them remove their AMD products, because that would put
their Alienware line in the same boat as their own XPS line.

If selling AMD chips would have made that big of a difference then
Dell would have sold AMD chips in their XPS line. Intel is in a
touchy enough situation as it is that they wouldn't dare try to punish
their #1 customer for such a move with a low-volume product line.

Honestly I really don't see the whole Intel vs. AMD thing factoring
into this deal. Really I think it all comes down to the fact that
Alienware KNOWS how to market systems to gamers and Dell doesn't.
Dell tried with their XPS line, but I'm guessing that they just
haven't succeeded.

-------------
Tony Hill
hilla underscore 20 at yahoo dot ca

On Fri, 24 Mar 2006 01:00:33 -0500, Tony Hill
wrote:

On Thu, 23 Mar 2006 18:08:25 -0600, Allan Parent
wrote:

I just saw this in the morning paper and was totally surprised. Was
this in the works for a while? At least Dell will now get to
distribute AMD CPU's...although at a distance.

It's been rumored for about a month now. I wouldn't be surprised
though if Dell cuts out the AMD-based systems from Alienware's
line-up. My opinion is that this is related more than anything else
to Dell kinda failing to achieve their goals with their XPS line, so
instead they're just buying out a company that makes similar products.
We'll see though.

I think it's more related to Dell failing to achieveperiod. Even though
this won't have a significant effect on their situation, it stirs the
pot... rattles the cages that anal...ysts live in and obfuscates their
financial situation. Their next two Qs do not look good (according to the
anal...yst gossip) so this gives them either a partial excuse or a boost...
admittedly minor in real terms but anal...ysts love to speculate and it's
grist for that mill.

From the conspiratorialist POV, it could be another Intel dirty trick by
proxy: get Dell to borg one of AMD's burgeoning market leaders. I don't
think this is *that* far fetched - whatever Mikey says about leaving
Alienware to chart its own course is obvious BS - no way he's not going to
bring them into the Dell supply chain.

It *could* be good for AMD though - we'll have to see but it could allow
Alienware to blossom. OTOH it's also possible that Alienware's customer
base is "not gonna buy a ****in' Dell" so they'll move on to the next guy,
though even in that case Alienware's reputation may help sell systems to
the mass market. Kinda like the way people still buy Buicks.:-)

--
Rgds, George Macdonald

On Sat, 25 Mar 2006 19:25:21 -0500, George Macdonald
wrote:

It *could* be good for AMD though - we'll have to see but it could allow
Alienware to blossom. OTOH it's also possible that Alienware's customer
base is "not gonna buy a ****in' Dell" so they'll move on to the next guy,
though even in that case Alienware's reputation may help sell systems to
the mass market. Kinda like the way people still buy Buicks.:-)

Yeah, right, but avg Buick buyer's age (not counting rental fleets
etc.) is over 65 and still going up. GM must pray for a medical
breakthru to increase longevity of their customers. OTOH any
longevity increases will affect their retirees whose benefits are
already pushing GM towards Chapter 11.

But anyway the spinners of both AMD and INTC got their fodder. AMD
can claim cracking the last remaining Intel-only Tier 1 PC OEM. OTOH
Intel can claim that 2 major OEMs (Dell proper and AAPL) stay Intel
exclusive (just please don't start another argument about Mac being or
not being a PC). And Dell gets their back door to sell AMD-based
tech, including Opteron servers, without actually doing so. If some
Dell customers insist on AMD, they can be quietly redirected to Dell's
subsidiary, instead of being sent to the competitors. The volves are
fed, and the sheep (Dell-Intel relationship) are not harmed.

NNN

Tony Hill wrote:
Yes, *that* scenario I can see. But of course the reason Dell would
want to do that is simply because their XPS line was not selling well,
because it was all Intel.

Or perhaps simply because it was a Dell? Perhaps Dell just hadn't
figured out how to market the things towards gamers?

Dell is all marketing, how can they possibily have not learned to
market to gamers, when they've learned to market to every other person
on the planet? I don't think it's a marketing problem, you just can't
sell a sow's ear as a silk purse, no matter what.

Nobody serious about games goes with Intel at
this moment. So I don't see Dell buying Alienware to sell gaming PCs
and then having them remove their AMD products, because that would put
their Alienware line in the same boat as their own XPS line.

If selling AMD chips would have made that big of a difference then
Dell would have sold AMD chips in their XPS line. Intel is in a
touchy enough situation as it is that they wouldn't dare try to punish
their #1 customer for such a move with a low-volume product line.

Intel is not in touchy enough of a situation to let Dell get away with
that; it can let other companies get away with that, but Dell is
unique, court-cases are not a big enough reason to let it off the hook.
There's certain things that are unforgiveable, and Dell going AMD is
one of them, no matter how much of a small scale. Intel contributes
heavily to Dell's bottom line, and therefore Intel expects full loyalty
from Dell. In return, Dell gets to severely spank Intel into price cuts
more so than any other company. Those Dell spankings usually take the
form of the typical quarterly AMD publicity-stunts. When the majority
of your bottom line is being set by another company, then that company
fully expects you to stay loyal to them, quite understandibly. Nothing
needed to be written down, it's all just understood by tradition.

Anyways, it's not the gamer market that Dell is buying into. Buying
Alienware is a backdoor into the really important Opteron market. I
fully expect Alienware to be announcing servers anyday now. It's the
Opterons that Dell's salesmen really want badly.

Honestly I really don't see the whole Intel vs. AMD thing factoring
into this deal. Really I think it all comes down to the fact that
Alienware KNOWS how to market systems to gamers and Dell doesn't.
Dell tried with their XPS line, but I'm guessing that they just
haven't succeeded.

I don't see any difference in Dell's marketing of XPS vs. Alienware's
marketing. The only difference is that the gaming market just knows
what it wants, and it wants AMD now.

Yousuf Khan

On Sun, 26 Mar 2006 04:50:08 GMT, "
wrote:

On Sat, 25 Mar 2006 19:25:21 -0500, George Macdonald
wrote:

It *could* be good for AMD though - we'll have to see but it could allow
Alienware to blossom. OTOH it's also possible that Alienware's customer
base is "not gonna buy a ****in' Dell" so they'll move on to the next guy,
though even in that case Alienware's reputation may help sell systems to
the mass market. Kinda like the way people still buy Buicks.:-)

Yeah, right, but avg Buick buyer's age (not counting rental fleets
etc.) is over 65 and still going up. GM must pray for a medical
breakthru to increase longevity of their customers. OTOH any
longevity increases will affect their retirees whose benefits are
already pushing GM towards Chapter 11.

Age of Buick buyers notwithstanding, the model works. This is reminiscent
of the buy-outs of boutique, high-end audio mfrs which have taken place
over the years. The buyer gets to bask in the glow of the original brand's
cachet in the mass market for a coupla years while losing the patronage of
the enthusiast who got it all started.

But anyway the spinners of both AMD and INTC got their fodder. AMD
can claim cracking the last remaining Intel-only Tier 1 PC OEM. OTOH
Intel can claim that 2 major OEMs (Dell proper and AAPL) stay Intel
exclusive (just please don't start another argument about Mac being or
not being a PC). And Dell gets their back door to sell AMD-based
tech, including Opteron servers, without actually doing so. If some
Dell customers insist on AMD, they can be quietly redirected to Dell's
subsidiary, instead of being sent to the competitors. The volves are
fed, and the sheep (Dell-Intel relationship) are not harmed.

It's been reported here that Dell has been selling AMD-based systems for a
year or more... to those who "insist". I guess Alienware will at least
make it official... from the front door.

--
Rgds, George Macdonald