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Technology Stocks : SYQUEST

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To: Stephen Leung who wrote (1418)1/22/1997
From: Dale Stempson   of 7685
 
Stephen, re: <<There was all this talk about Zip going to 200MB which never materialized. I suspect if it did it would make Zip harder to become a standard.>>

I believe you are correct in saying that the release of the 200MB ZIP would hinder efforts for the ZIP to become a standard. It will be interesting to see how and when Iomega addresses this conflict. I would guess that they already have a 200MB ZIP working and ready to go, but will wait until ZIPs are offered in more OEM system configurations. In addition, they will probably want to wait until their notebook ZIPs have made some inroads. Meanwhile, they will continue to work on reducing costs and increasing volume.

You're also correct when you say that, "people want reliability, speed, and performance," however, they also want low costs, compatibility and brand recognition. If Iomega senses that the SyJet is becoming a threat, watch for them to cut prices and offer a larger capacity version. If this happens, Iomega will win the lion's share of the business (IMO).

Regards - Dale
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