Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Stan J. Czernel who wrote (24620)	6/6/1997 7:13:00 PM
From: Michael Rick	of 58324

HRP: "The Zip disk price certainly will decline - over time. I don't doubt that this is part of the Iomega plan. But IO is selling all it (and its partners) can produce at the current price levels - - so why should they drop the price? The art here is to sell as much as you can at the highest price you can." IMO, I don't believe the lowering of disk prices in the future will necessarily have to have a large negative impact on disk margins. As Iomega's disk production increases the CGS should decrease steadily. Margins may not stay where they are now but they don't have to. As disk unit sales increase to the 75 million to 100 million per year stage (imo 1999) the need for, and ability to charge rich margins will diminish. Michael Rick

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