Dow Jones News Service ~ July 3, 1996 ~ 1:11 pm EST
(MORE) DOW JONES NEWS 07-03-96
12:55 PM
"Iomega Corp., Jaz Drive -2-: Cuts 1-Gigabyte Drive
$100>IOMG
ROY, Utah (Dow Jones)--Iomega Corp. (IOMG) cut by $100 the price
of its one-gigabyte Jaz drive, effective immediately.
In a press release, Iomega said its expects the estimated U.S. street price of the external Jaz drive to drop to $499 from $599 and the internal Jaz drive to drop to $399 from $499."
Maybe I'm just stupid, but how is this relevant to anything? It SOUNDS like a reduction in Manufacturers Suggested Retail Price, NOT a deduction in wholesale price. If so, then it should't make any difference because Jaz drives (at least the ones I've seen) are priced at seller's prices- a hundred OVER M.S.R.P.
Further, even if this is more than a get freindly(er) with consumers angle, then I still don't see a major problem, since Iomega is probably getting more effecient at spitting the drives out.
And even if they don't (which is doubtful) keep in mind THE MONEY ISN'T COMING FREOM THE DRIVES, IT'S COMING FROM THE DISKS. Which means that increased circulation, which is needed to counter any (potential) competition any is going to put disk sales through the roof.
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One final note. Concerning some recent griping over "shoddy" Zip drives. If there were a clearly better product, that might be a valid point, but there isn't, and no aanouncements for one have come out recently. BUT EVEN IF THERE WERE that's not the point. Do you have Windows? Do you LIKE IT? I've heard little to nothing good said about the operating system, yet everybody uses it! My point? With a little financial muscle the masses (IOMG's key market) will take what you offer and say thank you, regardless of quality. Just ask Ray Kroc.
All comments welcome
- Justin Smith
jsmith@softcom.net
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