Feeds

Dell embraces high-cost model with Alienware buy

Opens AMD shop

Internet Security Threat Report 2014

In a bid to color up a dull computer line, Dell has agreed to purchase flashy PC maker Alienware.

With the buy, Dell gains a maker of high-performance systems aimed at gamers and other demanding customers. The often pricey Alienware boxes stand out for their colorful designs and high-end components. Dell officials earlier this month had downplayed rumors of an Alienware buy.

The deal also opens Dell up to AMD processors, although indirectly. Dell plans to let Alienware operate as a wholly-owned subsidiary with its own marketing, sales and support staff. The Alienware brand will continue under this arrangement.

"Alienware's products are an excellent complement to Dell's own line of high-performance computers designed for gaming, enthusiast and media content customers," said Dell founder Michael Dell. "In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals."

This purchase is a rarity for Dell, which loathes acquisitions.

Dell, however, has seen desktop profits stall in recent months, as it gets harder and harder to make money off the kit. Alienware opens up a way to make money off gamers and other horsepower hungry types that are willing to pay more for the latest and greatest gear.

In addition, the Alienware line will add some style to Dell's uninspired designs.

Dell did not disclose financial terms around the deal, which should close in the next two months.

One can't help but wonder if Dell is getting a bit desperate to reach its goal of becoming an $80bn company. This deal breaks the no acquisition and AMD barriers in a major way. The low-cost Dell religion seems to be giving way to market realities. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
Jaguar Sportbrake: The chicken tikka masala of van-sized posh cars
Indian-owned Jag's latest offering curries favour with us
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Here's your chance to buy an ancient, working APPLE ONE
Warning: Likely to cost a lot even for a Mac
Xiaomi boss snaps back at Jony Ive's iPhone rival 'theft' swipe
I'll have a handset delivered. Judge us after you try us...
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.