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

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To: John Hoagland who wrote (3001)6/14/1996 11:54:00 PM
From: Fred Fahmy   of 58324
 
John,

The TDK news is excellent!!! First Sony and Fuji and now TDK. That brings the total to three huge names. The strategy here is to make ZIP as open as possible. We are trying to establish a standard and having big names like Sony, Fuji, and now TDK selling the disks is great. I hope you realize that IOMG will make money off of these sales, albeit at lower margins. The increased volume as ZIP becomes the 3.5" replacement will more than compensate for the decrease in margin. As an example if I were selling widgets, I would much rather get 40% margins on 1000 units then 80% margin on 10 units. Deals like the ones with TDK, Sony, Fuji, Epson, etc. only help get where we want to go. KE and Co. are brilliant and they don't want to get caught up in a Betamax fiasco. In the case of Betamax (similar thing happened to IBM and Microchannel) Sony tried to get greedy and keep their format proprietary. Even though they had the best technology and got to market first, they lost everything because they didn't share the technology. The rest of the industry said f#%c this, and went on to develope their own stanard (VHS). The rest is history. When I saw Fuji and Sony selling ZIP disks in the most recent PC Zone catalog I thought to myself "wow, this really legitimizes ZIP as the new standard". Just about all of the PC vendors are selling their drives and now some of the biggest names in media are selling their disks. I don't think the importance of these deals can be overstated.

FF
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