Any info about Iomega (IOM)? Message Board

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

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To: Rodney B. Hill who wrote (3413)	6/25/1996 6:49:00 AM
From: gary widdison	of 58324

Am I irrational to assume that, if ZIP is to become the next King of Data Storage, margins will drop massively? Ever since PC's became commodity products, there has been virtually no component I can think of (with the possible exception of the Intel chip) that has remained a proprietary product. For ZIP to gain and retain a position as industry standard, it will presumably have to do what Intel has done, i.e., continually reduce pricing on existing products while introducing new or measurably improved ones. Even with improving economies of production, it seems to me that the coveted status as heir to the 3.5 in. floppy slot in most or all new PC's will require significantly lower margins to stave off competition. Obviously, this should be offset by the kind of wonderful volumes that have been discussed elsewhere in this thread. But sales figures ought probably to be tempered by the probability that when Packard Bell and IBM start ordering ZIP's by the millions, they will want, and get, yet undreamt-of prices. Or am I missing something? Gary "Long in Japan" Widdison

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