Any info about Iomega (IOM)? Message Board

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

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To: Richard Savage who wrote (4721)	7/20/1996 12:44:00 AM
From: Jimmy Parks	of 58324

If KE is anticipating the Zip becoming a standard in new computers, then a permanent decrease in price is not a good move. A $50 rebate allows Iomega to temporarily increase market share at the expense of earnings. Once Zip becomes standard fixture in PC's, then people won't be buying as large of volume of external units. A decrease in volume sales indicates that a company must have a higher price in order to sustain profit margins. A permanent price decrease would result in a price increase in the future. Rebates are much better for other reasons as well, but I don't want to waste your time with all the reasons KE might have chosen to go this route.

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