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

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To: Jon Tara who wrote (24574)6/6/1997 12:14:00 PM
From: Trakker   of 58324
 
Jon,

You are uninformed about Iomega:

>>Realize, though, that what is good for the company is not necessarly good for the consumer. Consumers may not agree.<<

Iomega is consumer research driven and they have done due dilligence to know what the consumer wants. Explain why the zip drive is successful? Explain why KE has hit every price target at the time needed to cut competition off at the knees? Explain why zip skus are the best sellers with OEMs to the consumer market?

>>Yes, it's an "acceptable" value for the consumer. But barely, because hard disk space is actually cheaper now - they are paying a premium for portability - worth it? yes - but how much?<<

Consumers are frustrated about paying the price to replace their hard drives every 12 months. Hard drives already come 20-40% full out the door. If you bought a Jaz drive, your Cost Per Megabyte would quickly come down to the point, that yes it's a cheaper approach than ripping out your hard drive or paying someone to upgrade for you.

<<The problem is the minimum increment. People are not going to toss $15 disks around like frisbees. And you have to get to that point for it to be a standard.<<

If you're talking about zip we've already passed the $15 price point a long time ago.

>>Maybe IOM doesn't want Zip to be a standard. Maybe their business model doesn't depend on Zip becoming a standard. In fact, I believe that is the case. Perhaps becoming a standard would be *bad* for IOM - lower margins, loss of control. But that means that the growth rate isn't going to be quite what some of the cultists claim it will be. :)<<

Maybe it's quite possible you haven't an idea what Iomega is actually doing.:(
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