“Dell may be breaking out of the box. Often criticized for garden-variety PCs that differ little from competing consumer brands, Dell on Mar. 22 said it would buy Alienware, a maker of high-end computers popular among gaming enthusiasts — and anything but ordinary,” Louise Lee reports for BusinessWeek. “Pressure on Dell to break with some longstanding traditions is high. Hewlett-Packard and other competitors have vastly improved product performance and customer service, while Dell’s service ratings are in the doldrums and recent sales have disappointed investors. Dell CEO Kevin Rollins and Chairman Michael Dell are on the hunt for ways to jump-start growth.”
“In September, the PC maker staged a splashy relaunch of its XPS line of desktop and notebooks, which — like Alienware’s machines — are aimed at affluent households and hardcore gamers. Dell said in February that unit volumes of XPS machines rose 20% in the most recent quarter from a year earlier, but didn’t elaborate… A Dell spokesman says despite the Alienware purchase, the company is ‘not backing off its support of XPS,'” Lee reports. “Some analysts, however, don’t see the XPS line, which starts at about $1,000 for a desktop and $2,000 for a notebook, as bringing much benefit to Dell. ‘We don’t think it’s an important driver of growth,’ says Pacific Crest Securities analyst Brent Bracelin. ‘XPS is a low-volume product,’ says Charles Wolf, analyst at Needham & Co. ‘If you’re going to spend that kind of money, get a Mac.'”
Full article here.
MacDailyNews Take: Funny quote, but we must note that Macs are actually less expensive than comparable Dell PCs. And you cannot get Mac OS X or excellent Mac-only apps like the iLife suite on any Dell, no matter how much you pay.
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Dell acquires PC maker Alienware in bid to corner market on gaudy case designs – March 23, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006
Financial Times: Dell and Microsoft can never hope to attain Apple’s Mac aura – January 10, 2006
Struggling Dell has lost its mojo while Apple shows rapid growth – November 07, 2005
Dell goes after Apple’s high-end Mac market with ‘XPS brand’ desktop and laptop ‘luxury’ Windows PCs – September 28, 2005
Apple continues to lead in customer satisfaction, Dell loses more ground – August 16, 2005
Michael Dell say’s he’d be happy to sell Apple’s Mac OS X if Steve Jobs decides to license – June 16, 2005
Why buy a Dell when Apple ‘Macintel’ computers will run both Mac OS X and Windows? – June 08, 2005
Apple Macs are less expensive than Dell PCs – April 24, 2005
Apple Macs are less expensive, more secure, longer-lasting than Windows PCs – April 21, 2005