Thursday, March 23, 2006
With a nod towards the high-end consumer end of the PC market, Dell today said it will acquire Alienware, providing AMD with a foothold into what has been an Intel stronghold OEM.
PC maker Alienware’s line of high-end PCs and notebooks for gamers, enthusiasts and the media savvy include models that incorporate AMD processors and models that incorporate Intel processors. Dell, on the other hand, has used Intel processors exclusively.
Rumors of AMD breaking into Dell have ebbed and flowed over the years, with AMD’s recent momentum bringing a new round of speculation into whether the PC giant would strike a deal with Intel’s smaller rival.
In the statement announcing the acquisition, Dell did not specifically address whether Alienware would continue to use AMD processors in its products.
But Dell did say that Alienware will operate as a wholly owned subsidiary following completion of the transaction and will maintain its own product development, product marketing, sales, technical support and other operations as well as brand, according to the company’s statement. The management and founders of Alienware will continue to operate the company as a standalone unit of Dell.
"Alienware's products are an excellent complement to Dell's own line of high-performance computers designed for gaming, enthusiast and media content customers. In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals," said Michael Dell, chairman, in a statement
"Alienware has a legacy of success designing the highest-performance PCs using bleeding -edge technologies and innovative industrial design," said Nelson Gonzalez, CEO of Alienware. "We believe that Alienware will realize significant advantages from Dell's world-class supply chain and operational efficiencies. They will allow us to continue to satisfy our core customers with the most innovative and highest-performing PCs, and ultimately extend the reach and appeal of the Alienware brand."
AMD expects to continue to work closely with Alienware, a spokeswoman for the company said.
“We hear from Dell customers every day who have an interest in AMD64 processors,” she said. “This acquisition is a testament to industry-leading companies who are successful and enjoy the competitive advantages offered by AMD solutions.”
While AMD stopped short of saying the deal was a precursor to AMD-based Dell machines, the company acknowledged it could be a step in the right direction.
“With history as a guide, AMD has found in the past that when existing AMD customers have merged with companies, it has expanded our relationships in a positive way,” the spokeswoman said.
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