Any info about Iomega (IOM)? Message Board

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

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From: Ken Marcus	5/27/1996 1:28:00 PM
	of 58324

Frank, a good rule of thumb is that with each doubling of production on a given item, the cost of producing it goes down by 15%. Therefore, iomega can and will make a profit selling zips at those levels. When and if they have to or want to, they will lower the price. We already see the economies or scale kicking in when we look at the fact that the read/write chip that they get from IMP is bought at almost half the price of normal. A potential competitor would have to think twice about introducing a product to compete with the zip, since it can be sold for such a low price. Virtually a one product company? Ditto has displaced the competition at 5 out of 6 of the top US retailers. Jaz is ramping more each month and when the automation kicks in fully, we will see fantastic availability. Zip: if I was to want a one product company, this is the product I'd pick, the next floppy. Comparing iomega with it's patented technology to the commoditized dram business is an impossible leap. As a side note; the hungrier chip companiess are, the cheaper they will their chips to iomega. :-) Ken Long on iomega and bought back my covered calls

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