Standard industry analysis would classify powerful buyers such as Dell as a negative for Nvidia. But without powerful PC makers such as Dell and HP, Diamond might have maintained its hold on retail channels. It was the power of these concentrated buyers that allowed Nvidia to skate around Diamond’s established brand. Note that, in general, if you have a “me-too” product, you prefer fragmented retail buyers. On the other hand, if you have a better product, a powerful buyer such as Dell can help it see the light of day.
