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Non-Tech : Any info about Iomega (IOM)?
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To: Ken Marcus who wrote (4056)7/4/1996 12:27:00 AM
From: Jimmy Parks   of 58324
 
The type of momentum they are discussing does not occur in the time span
that the Jaz has been released. The high end market is a strange animal.

If the type of momentum the article describes is not going to happen in the
expensive high-end user community. If you look at the history of the removable,
you would have made a fallacious comment that the Bernoulli box had become
the standard. Later, you would have said that the momentum of the Syquest
drives had made the Syquest the standard.

The Zip has become a standard because of the volume of them sold. Wall
Street analysts have been wrong about the performance of Iomega because
they do not know how a standard is established and the financial ramifications
of that occurrence.

My latest visits to Silicon Valley lead me to believe that there is an inadequate
supply of Jaz drives to allow it to become a standard. Strategic analysis leads
me to believe that Iomega must focus on the Zip in order to insure their cash
cow. Despite what Iomega would like to do, they cannot do anything about
leaving an opening for the Syjet to compete.

On the other hand, does Syquest have the resources to make a good show
in the Syjet/Jaz market. They are slowly bleeding and without a successful
release of the Syjet product, they are headed for bankruptcy within 9 months.
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