Any info about Iomega (IOM)? Message Board

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

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To: Dale Stempson who wrote (8342)	10/4/1996 5:50:00 PM
From: Bill Fischofer	of 58324

Rebates aren't going to have an impact on earnings. Why? Because a rebate is nothing more than a marketing ploy to milk extra profit from an already-planned price cut. If anything they are accretive to earnings (company gets the float, some buyers don't bother to send them in, etc.) When INTC lowers the price of a Pentium by $50 per chip you don't see folks nervously adding up the "losses" on each sale at the new lower price. The name of the game in the tech business is to lower your costs faster than you lower your prices. Does anyone seriously believe that IOMG's production costs for Zip have not been dropping month by month as they continue to ramp up? I would be very surprised if IOMG wasn't making more on a $149 Zip today than they were making on the $199 Zip six months ago. So relax. Zip is rapidly becoming a cash cow for IOMG.

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