From IOMEGA"S ANNUAL REPORT
Although the Company believes the Zip and Jaz products offer
price, performance or usability advantages over the other removable-media
storage devices available today, the Company believes that the price,
performance and usability of existing removable-media products will improve
and that other companies will introduce new removable-media storage devices.
Accordingly, the Company believes that its Zip and Jaz products will face
increasingly intense competition. In particular, a consortium comprised of
Compaq Computer, 3M and MKE has announced the Floptical 120, a high-capacity
floptical drive that is compatible with conventional floppy disks. In
addition, both Mitsumi and Swan Instruments are expected to introduce
high-capacity, removable-media disk drives in 1996 that would also directly
compete with Zip and Jaz. As new and competing removable-media storage
solutions are introduced, it is possible that any such solution that achieves
a significant market presence or establishes a number of significant OEM
relationships will emerge as an industry standard and achieve a dominant
market position. If such is the case, there can be no assurance that
the Company's products would achieve significant market acceptance, particularly
given the Company's size and market position vis-a-vis other competitors. |
