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Non-Tech : Any info about Iomega (IOM)?
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To: Jon Tara who wrote (24597)6/6/1997 12:38:00 PM
From: Trakker   of 58324
 
<<Todd, the cost per megabyte of Jaz media is greater than that of hard drives. Given that, how can users reduce the cost per megabyte by using Jaz?>>

The usage of space is not static. You use your computer, you save information, you use up space. Eventually a hard disk becomes full and you buy a bigger one to replace your first one. With Jaz you buy the drive and then buy disks. The drive is never replaced and you add storage in 1 GB increments at a lower cost than hard disk replacement.

<<I do know what Iomega is actually doing. Some people (I said *some* people) here seem not to. I don't beleive it's about becoming the standard and replacing the floppy. I don't think Iomega intends to replace the floppy. If they do that, they can't remain a high-margin niche.<<

On the drives your right. Their intent is to become a low-margin mass market product with the drives. High margins will come from the disks.

>>In order to weave some of the fantasy numbers we have seen, it's necessary to assume that the Zip *will* become a standard and replace the floppy, while retaining current margins.<<

Zip is a system that includes two parts: a drive that they want to give away and disk that they can keep lowering costs to manufacture, while shipping hundreds of millions at high margins.

<<That is unrealistic, and that is what I object to<<

That's only your opinion. My profits are on them doing it.:)
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