>>Guy, the other thing is that IOMG does not trade based on the current fundamentals, but on future potential of earnings and "momentum stock" status.
Well this future potential is now being threatened by some huge players with deep deep pockets and an enhanced version of a technology that is already accepted by the industry as a standard, CD-ROM.
Again it will come down to the price of the unit and CD's. I'm sure if they cannot be competitive in the beginning, they will cut prices till they are, even if they lose money...they can afford to!!<<
Sure, Dave, but how long will it take them to get CD-RW down to a competitive price point? Say, to $399, where the Jaz is today? At least a year, right? And where will the Jaz be then? $299 or less, with a capacity of 2.5 GB or more, and still profitable.
Then there's the point that CD-RW is only partially compatible with standard CD-ROM drives. You can play your old CDs on your CD-RW drive, but can't play your CD-RW disks on old CD-ROM drives. How long will it take to get enough CD-RW drives into the hands of users to make it a new standard?
- Allen |
