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The outer limits: with larger PC-makers struggling, why is Alienware doing so well?

Publication: Entrepreneur
Publication Date: 01-MAR-05 		Format: Online - approximately 941 words
Delivery: Immediate Online Access
Full Article Title: The outer limits: with larger PC-makers struggling, why is Alienware doing so well?(Digital Edge)(Alienware Corp.)(Personal Computers)

Article Excerpt
ALEX AGUILA and Nelson Gonzalez must not be from around here. As CEO and president, respectively, of Alienware Corp. Inc., they apparently haven't heard that you can't make money building PCs.

Conventional wisdom says desktops are low-priced commodities with thin margins--and analysts foresee a shakeout this year that will sideline some of the largest manufacturers. IBM already said "the heck with it" and sold its desktop operation to China's Lenovo. If the company that the PC was named after can't make money building PCs, then what chance do two thirtysomethings from Miami have?

Apparently, a good one. Alienware has become one of the country's fastest-growing private companies with revenues that zoomed past $112 million in fiscal 2004. That's a few zeros shy of the numbers Dell and Hewlett-Packard put up--but hey, you or I could live on it.

PC margins...

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