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Non-Tech : The New Iomega '2000' Discussion Group

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To: D.J.Smyth who wrote (1585)	7/10/1999 12:24:00 PM
From: Rocky Reid	Read Replies (2) of 5023

Your whole premise is based on the belief that Zip disk sales will benefit from the installed base of Zip drives plus new sales of Zip drives. However, real life is not bearing this out. Zip disk unit sales have increased mainly because of lower prices. This means lower margins. I think when the numbers for 2nd Q 99 are released, you will find the disappointing truth that Zip disk unit sales have stalled and revenues are headed downward. I think you will also find that Zip drive unit sales are down year to year. If you do the quick math of monthly disk sales so far this year, they are running flat with last year even though there are more installed Zip drives out there. The theory of explosive Zip disk revenues is simply not true. You will also find that overall revenues for Iomega are down year to year. My guess is (8%) Down. >>In the end it's not 10, 20, 30, 40, 50 or more Red Barron all night party Gigs being placed on a single 4 inch X 4 inch piece of refined sandpaper for storage; it's what does the public want and and what cost?<<< Well, obviously the buying public does not agree with you because hard drive sales of 20Gig and 30 Gig drives are exploding. Next year, 40 and 50 Gig drives will be dominant in aftermarket sales, and 20 Gigs will be standard on low-cost machines. Zip100 or Zip250 are not even considered "quaint" by this standard. Wholly inadequate is a better term. With the coming of age of DSL and Cable modems, space-consuming content will be the rage. And 2.2 Gig Orb makes for a good start in low-cost manageability and offloading of these files (4.7 Gig DVD-RAM or DVD+RW would be good too, if only they can get costs down and standards set). The upcoming 8-10 Gig Orb successor will be even better.

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