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Non-Tech : Any info about Iomega (IOM)?
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To: Mama Bear who wrote (7363)9/22/1996 3:14:00 AM
From: Guy Gordon   of 58324
 
Barbara, you are quite right about the drive vs. disk margins.

I wonder how fast Iomega will have to lower disk prices in order to make the Zip replace the floppy. Luckly, they have LOTS of room to lower disk prices. In the long run, Zip disks cannot be more than twice as expensive as a 1.44Mb floppy disk, and they only cost $.20 or less to produce in bulk.

I also wonder if Iomega will ever start shipping the 25Mb Zip disks in quantity instead of lowering the 100Mb Zip quickly.

In fact, having a 2-5Mb Zip disk that sells for under $1 could silence the Zip critics who point out that the Zip cannot replace the floppy for exchanging small files so long as the disk sells for more than people are willing to give away.

There could be several problems with a strategy of selling graded Zip disks (i.e. several capacities). First, they are bound to cost the same to produce, but bring in revenue proportional only to their capacity. This would keep Iomega from producing them until there is an oversupply of 100Mb disks. I believe this is why you can't find 25Mb Zip disks right now.

Second, if smaller Zip disks were made with the same Fuji ATOMM media as the 100Mb, then some clever engineer <grin> could figure out how to re-format them to 100Mb. In fact, I'd love to have a shot at that. Such a thing could make me even more money than owning IOMG.

Does anyone have a 25Mb Zip disk they would sell me?
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