Dell to buy Alienware. Really?

[WGruener]

Rahul Sood, founder of enthusiast PC company VoodooPC, has floated a few days ago the idea that Dell may be warming up to AMD by acquiring Alienware.

We've done a bit more reserach into this topic and while we couldn't get any hard evidence for such a deal as of now, it appears that Sood may not be far off.

What do you guys think? Does it make Dell more attractive? Or Alienware PCs less attractive?

Looking forward to reading your posts!

 

[MadModMike]

I don't see the pigs flying yet.

~~Mad Mod Mike, pimpin' the world 1 rig at a time

 

[Heyyou27]

I wouldn't ever buy a Dell or an Alienware, so it makes no difference.

 

[dvdpiddy]

my ass! :x

 

[MadModMike]

From what I read of his "personal blog", he just thought this idea up out of thin air. He gave reasons like "Dell needs more money" and "Dell wants to get into gaming", how does that mean they're planning to buy a company? Or even if Alienware would accept it, but if the #'s are high enough, can't say anybody would resist.

~~Mad Mod Mike, pimpin' the world 1 rig at a time

 

[sledgehammer70]

Alienware makes good products, but if Dell gets it's paws on it, say good buy to a good company. Now if they keep the same tech and designs, and products... that make them as high end as they are than thats cool. But we all know how Dell is... the big freaking plastic parts all over!

I guess we will have to see.

 

[SuperFly03]

Dell makes some good stuff, mainly laptops. I have yet to see another mobile gaming system with a UXGA display and a Centrino package. You may sacrafice marginal CPU speed by going centrino but you save alot of battery life. This appeals to me because I wouldn't always want to game on a laptop so knowing that my notebook wont crap out in 30 min is nice to know

As for Dell aquiring Alienware..... Hmmm what to think. With an increase in attention on gamers and the enthusiest market I'm not suprised to hear RUMORS of a big ass company like Dell or HP taking them over. I think it would be a good move for Dell, as long as they dont axe Alienware's image. Of course they will change things, but you never know, they could do things right

 

[pengwin]

I wouldn't ever buy a Dell or an Alienware, so it makes no difference.

yup

 

[enewmen]

I will rather see Dell get interesting without buying Allienware.

But can you guys please explain why you will won't buy an Alienware PC?
(if you can not build you own system)

 

[MadModMike]

I will rather see Dell get interesting without buying Allienware.

But can you guys please explain why you will won't buy an Alienware PC?
(if you can not build you own system)

Computer From XYZ Company: $1,250.56

Computer From Alienware: 2nd House Mortgage

~~Mad Mod Mike, pimpin' the world 1 rig at a time

 

[mpjesse]

Yeah I read this on slashdot this morning. I think it would be a good move for Alienware so long as they keep the Alienware name intact. As the story suggests, Dell simply ain't "cool." If they intend to buy Alien to butcher it- they're wasting time and money.

I think it'll happen. Alienware is a well established company and has brand name recognition. Plus Dell has a TON of capital to blow.

As far as the AMD part goes- I don't Dell cares one way or the other. I doubt Dell is considering buying Alienware just so they can have an excuse to stick w/ Intel in their branded machines. That's going just a bit too far... even for Dell and Intel's famously loving relationship.

-mpjesse

 

[Ratbait]

Alien has a bad customer service reputation. If anything Dell would improve this 100%.

Cost wise their top of the line model runs close to $8000.00 of which broken down component wise could be had for about 3000.00 if you wanted to spend that much. You could do it for even lower if you did not want all the bells and whistles.

Alien has a kick ass product. AMD happens to be one of their main suppliers for CPU and they have Nvidia as their major GPU supplier.

Rahul is creating this buzz just to get change market dynamics. Alien in a Dell Business plan means lower prices. That way those who want to spend the big bucks on his product can do so with snobish appeal. Like Rolex vs Timex.

 

[hongkongphuey]

With so many corporations coming together I would not doubt this one bit. (Intels in Macs? Who would have thought?) Would this cause me to buy there systems? NO. I wouldn't buy any of these companies systems.
EVER.

 

[PDH-NicFury]

Dell/ Alienware= good and bad. The good would be that Alienware has more resources (capital) to work with, which could lower prices on there high-end PC's. I agree that Alienware has to keep the Dell bosses from messing with their operation, read: don't start giving us cheap/ proprietary parts, cheesy paint jobs, etc. Alienware could also give Dell the 'AMD' factor that's been missing, keeping Intel in the productivity division of Dells market. It's a win/ win for Dell.

I also agree with a lot of the other posters who wouldn't touch Alienware or Dell... make your own if you go high-end. Or go with OverdrivePC, Monarch is another alternative, those guys give you serious bang for your buck.

Almost forgot, I don't think this merger will happen since Dell is already beefing up it's gaming division with a quad-gpu rig and holding hands with nVidia.

From another thread in the forumz, Intel vs. AMD... AMD ROCKS! Since I started getting into PC's with the turn of the century, I've found that Intel has usually tried to use brute force to make better/ faster cpu's while AMD has tried to their brains to make better/ faster cpu's. Case in point-- When dual-core cpu's hit the market, AMD already had a bridge in place while Intel rushed to put out a piece of garbage that didn't have a bridge inside the cpu. AMD subsequently smacked down Intel, and will continue to smack Intel. I mean, DAMN, they run a third less GHz in AMD cpu's and STILL smack down Intel.

8) 8O

 

[crazypyro]

As much as I hate the thought, I have to welcome it. Alienware could be the brand Dell needs to change the companies image. Let's just hope Dell basically lets Alienware stay the way they are, a decent PC thats severly overpriced.

But as I read this article elsewhere, I like the idea presented in it. Dells acqusation of Alienware may be Dell's indirect approach to using AMD systems. Using Alienware as there AMD brand they can make AMD based solutions for customers, while keeping there Intel "inside" deal, kinda like getting your feet wet before diving in.

Here's to hoping.

 

[bourgeoisdude]

As much as I hate the thought, I have to welcome it. Alienware could be the brand Dell needs to change the companies image. Let's just hope Dell basically lets Alienware stay the way they are, a decent PC thats severly overpriced.

But as I read this article elsewhere, I like the idea presented in it. Dells acqusation of Alienware may be Dell's indirect approach to using AMD systems. Using Alienware as there AMD brand they can make AMD based solutions for customers, while keeping there Intel "inside" deal, kinda like getting your feet wet before diving in.

Here's to hoping.

I'm with you, this deal makes since. They have had serious problems selling their XPS systems, and this will definately help them sell gaming systems. Also Alienware has used AMD for many many years, allowing for Dell to use proven AMD designs rather than jumping into it without knowing anything about it.

Also, this way supply should not be a problem. AMD is a big partner with Alienware, and Alienware knows them well. If Dell buys them, you betchya they will let all the Alienware staff come along for the ride. This way everyone wins.

Problems could arise, however, BECAUSE they are so different. Dell management will be ultimately in charge, and they will probably start by letting the Alienware section do their thing, but soon Dell will want to intervene. That will cause division amongst them. Dell will also want to "force" the alienware guys to train dell people about their existing systems, and a huge dogfight over who's support method is better could erupt.

Don't forget the HP-Compaq merger. Looked good on paper. Sure, HP now gets the benifits that Compaq provides as well as the benifits HP had, but they now have HP's problems AND Compaq's problems too. And Compaq had a sh!tload of problems!

 

[madden95]

It's not so much that Dell needs to aquire Alienware so much as Dell needs to use all the resources from that they would to use here to create an adequate high end product. Let's face it though, Dell's market consists of low-end to mid range computers and unless things change people like those who inhabit these forums will continue to build their own rigs for the performance they are looking for. Overall, I'm not big on either of the two companies.

 

[RocketRobin]

Oftentimes keeping your finger on the pulse of the PC industry is a good thing. However, if you don't know what you're doing it can lead to constipation. In extreme instances, it might mean a rectal colostomy.
Of course, it's entirely feasible one might live a full life with one's sphincter attached to a digit.
Perhaps we should ask Sting about the potential acquisition? After all, he wrote the song "Wrapped Around Your Finger".
Perhaps nVidias quad-SLI technology simply made someone else lose a level of intestinal fortitude. After all, anyone can feel a little self concious after the sh1t hits the cloth.

 

[mpjesse]

Dell doesn't <need> Alienware, but here's the thing:

Right now Dell is sitting on a buttload of cash. It's no secret that shareholders have been pressuring Dell to spend their capital in some manner. And shareholders have been generally displeased with Dell's inability to grow. Right now Dell is in a period of no growth. They're making money, but they're not growing. The only part of their business that's even remotely growing right now is their printer business... and even that has stalled. In fact, if you look at the 12 month stock report of Dell, it's been steadily falling.

http://quote.morningstar.com/Quote.html?ticker=DELL&pmts=SQ2&pgid=qtqnnavrel2

Anyways, when you have this much cash you typically do 1 of 2 things: pay out dividends to your shareholders or buy something. Wal-Mart, M$, and ExxonMobile are going through the same troubles.

At this point in Dell's strategic situation I think it makes more sense for Dell to spend their cash on a printer company like Lexmark. Right now Lexmark Optra's and T630's are frigin hot. Dell already has a rebanding deal w/ Lexmark so it wouldn't be that much of a stretch for Dell to buy Lexmark. This, to me, makes more sense from a competitive and growing point of view. But Lexmark can't be had for less than a couple billion at least. Alienware could probably be had for around $500,000 million or less.

Alienware made approximately $170,000,000 in revenue last year. That's nothing! The piddly company I work for made six times that last year. In retrospect Dell made $49 billion in NET revenue last year. Because alienware is a private company, they are not obligated to share their earnings with the public. So who knows if alienware is even profitable?

Indeed this probably is just a way for Dell to increase revenue in a growing market (if it even is one. as madmodmike pointed out this is nothing more than speculation and rumor). The only reason Dell would buy Alienware is for revenue growth and maybe (this is a stretch) for plausible deniability to their good friends at Intel.

Generally speaking, there's not a whole lot of money to be made in the gaming pre-built computer arena (right now). I've seen a few reports that the high end enthusiast market is growing. Additionally gaming PC's have an extremely high margin.

Just my financial thoughts. ;-)

-mpjesse

 

[k2000k]

I personally could care less, I dont plan on buying a computer from a dell, HP, Alienware, voodoo, etc.

I do not know if this will actually pan out, there are some good reasons as mpjesse stated. But I thought that Dell would use AMD because it made logical sense, yet that didnt pan out. This move would be good if dell does it like car companies acquiring other companies. Ford owns jaguar yet jaguar retains its own name. As long as Dell keeps the core of dell seperate from alienware and visa versa Dell should see a boost in their revenues. Dell would remain the manufacterer of cheap computers for the average joe. And alienware the true perfromance pc manufacterer. Dell cannot rely gain marketshare any other way because of the stigma dell has in this, the enthusiaste, community. But, part of me thinks that Dell will eschew this train of thought. If for no other reason than it would require that they admit that their XPS line is a failure.

 

[mpjesse]

Indeed... indeed.

 

[qurious69ss]

I guess we're giving up on the Dell switching to Amd rumour.....Ok let's try the Dell buying Alienware which uses Amd rumour yeah that's it. Why does this guy have such a hardon for Dell using Amd. You know hp, lenovo, and gateway use amd, so let's just let it be and move on. Just move on it's oooooooooook.

 

[mr_hayt]

I owned a Alienware before I started building my own computers. Ive also owned a dell laptop. All i can say is that alienware is one of the best companies out there for some one who is looking for a gaming computer. If dell gets ahold of it, they will start installing all of their dirty littly usless programs on it and screw it all up. Just my 2 cents, personally i wouldnt buy from either of them any more, if i were to buy a premade computer, Voodoo is the way to go.

 

[chuckshissle]

Well my question is, does it makes Alienware not cost like $5000 for an sli setup? With the same budget for an Alienware 7800GT SLI, I can make an setup with 7800GTX 512!

 

[woodwork]

I currently own an alienware.. Lets just say they are way way way overrated and the customer service is horrid. Not to mention I have had problems with it ever since i got it... which was about 3 weeks ago.. Save your money.. dont go alienware.. its just a name.. The whole point of buying a packaged deal is for customer service and warranty.. In both of these areas alienware is lacking badly. Not to mention something that cost almost 3,000 dollars should work when you get it. Its just a name.. nothing more.