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Technology Stocks : SYQUEST

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To: Cogito who wrote (3651)8/5/1997 7:05:00 PM
From: Mary Cluney   of 7685
 
>>>But whether the SyJet is better or not, the real point is that Jaz only accounts for a small percentage of Iomega's sales, and it is the only product with which Syquest competes at all. How does that supposedly motivate Iomega to mount an unfounded lawsuit?<<<

Syquest has conceded the Zip market to Iomega. They are targetting the high end users. The multimedia, graphic artist, DBMS types. These aren't the average consumer types where every penny counts. These people will spend whatever to get the job done. This market is probably small - no more than 2-3 million - but growing. What is important is that this is an influential lot. They are leading edge types.

Also, Iomega has not really gotten their act together in the Far East market. This could be another market where Syquest can compete.

Going forward, iomega cannot lose these markets if they are to continue to grow at a high rate with good profitability.

Personally, I think competition is good. The battle for the high end will create a larger market. Without this competition, Iomega would not develop anything ressembling the Rocket on their own.

Good luck to both.

Regards,

Mary Cluney
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