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Non-Tech : Any info about Iomega (IOM)?
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To: Sturgeon who wrote (1539)5/6/1996 11:18:00 PM
From: Guy Gordon   of 58324
 
"I've read that IOMG is going to reduce prices to fend off potential
competition. Won't this really hurt their margins?"

Only if costs do not also fall. Don't forget that margins on the disks are much higher than on the drives. Iomega will reduce prices in accordance with an ages-old strategy: Act *as if* you have competition, in order to forestall it.

"Can anybody name another storage medium that has become a standard
that is controlled by one company?"

I believe the CD-ROM is pattented by Philips, who get a royalty on all disks, but I'm not sure of that. In any case, hi-tech businesses have a long history of licensing and second-sourcing which solve this problem.
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