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The Outer Limits

With larger PC-makers struggling, why is Alienware doing so well?

This story appears in the March 2005 issue of Entrepreneur. Subscribe »

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?

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