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Non-Tech : Any info about Iomega (IOM)?
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To: Fernando J. Pineda who wrote (2916)6/14/1996 3:00:00 AM
From: Guy Gordon   of 58324
 
Frenando: I'm having more trouble estimating the Iomega revenue per Zip drive, for a couple of reasons.

1. This is really more than one product. The internal IDE drive is bound to be less expensive than the external units for two reasons: External requires a case, and, SCSI electronics are more expensive than IDE. (The parallel Zip is just a SCSI in disguise.)

2. I don't have a price on the Zip drives from distributors.

So at this point all I have is a WAG (Wild Assed Guess). I estimate (that sounds so much more professional) that Iomega gets $90 for internal Zip drives sold to OEMs, and $160 for external Zip drives sold to distributors. And possibly as much as $180 for external units sold direct to retailers like CompUSA, Computer City, etc.

Further, I think that Iomega is skimming the cream on the drives by selling more direct to resellers and keeping the distributors in short supply.

As I've said before... this management is pretty smart.
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