Wednesday, March 22, 2006

Dell contiues to move upmarket with the purchase of Alienware

Dell has just announced buying Alienware in another move intended to move the PC maker upmarket.

Ten-year-old Alienware has built a loyal following among computer users willing to pay $5,000 or more for powerful machines in odd colors such as "cyborg green. And have built a $225M revenue business on the back of it.

The hi-end computers will be positioned as hi-end media PC's as well, which is a fast growing sector with the growth of Microsoft's Media Center.

This looks like a smart move by Dell. And they need to move more upmaket as the PC sector matures and as Acer and Lenovo drive for the lowest-cost space.

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