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Non-Tech : Any info about Iomega (IOM)?
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To: Young D.T. Nguyen who wrote (3384)6/24/1996 11:45:00 AM
From: Rodney B. Hill   of 58324
 
Young,

The zip has no real competion as of yet, so their margins will remain high at least for 6 months or so. I think their biggest margin pressure will come from within when they launch a 200MB zip, probably at the $199 level. The 100 MB version will still sell well, but probably for somewhere between $99 and $129.
The Jaz, on the other hand, has competition. I don't know much about the EZ, but it seems to be at the low end of the same market. The bigger competition, as I see it, is from existing HD technology. Like it or not, a 1.2 GB HD for $129 (and coming down all the time) is direct competion. This has to keep the margins significantly lower for the Jaz. Q2 results will begin to tell the story if we can see through some of the ramp-up costs.

Just some thoughts,

Rod, long on IOMG
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