To All(Stan Walker): LS120 Update Repost from 8/14/96 5:12PM
Stan,
Here's my repost. Relying on my memory, I apologize if I omitted something along the way.
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Just got off the phone with O.R. Technology/Insite, the manufacturer of the LS120 drive. The release date for the aftermarket/consumer segment has been delayed once again. This is the third time in the last three months. I've been calling them once a week for the past three months. The LS120 was originally scheduled for release at the end of June `96. Now, the planned date has been pushed back to sometime in September `96.
The LS120 is no longer a prototype. It has already shipped to Compaq. I spent over a half hour trying to find a knowledgeable Compaq sales/tech who knew exactly what PC models were shipping with the LS120 standard. Most of the telephone reps had no idea what the LS120 was. The LS120 is offered in only ***two*** Deskpro models. These are the Deskpro 5133 Model 1200 and the Deskpro 5166 Model 2000. Both of these are not aimed at the home consumer market like the Presario nor
at the high-end network server market like the Proliants are. The Deskpro 5133 & 5166 are mid-range $2300-$2500 Pentium 133 & 166MHz PCs targeted at the office workstation segment. You can only order these models via Compaq Directplus ordering line.
Why does O.R. Technology keep pushing the consumer release date of the LS120 back further and further? Remember this product has been known and much anticipated by computer folks as far back as late `95.
Why does Compaq, who once touted and backed the LS120, treating it with extreme caution? Several Compaq sales staff and independent VARs I've talked to have never heard of it. I know Compaq is probably testing the waters for consumer acceptance prior to a larger scale roll out but this is a joke! How can Compaq even hope to have luke warm success with the LS120 if the product is only offered in two not well known and distributed PC models (most consumers buy Presarios not Deskpros)?
All of this gets a little stranger, because 3M/Imation the current manufacturer of the LS120 disk media shipped orders to a small number of large mail order firms (CDW and Misco) at the end of May `96. The part number for the LS120 single pack disk is #46847 MSRP $20. As of yesterday, both CDW and Misco have it in stock and sell it for $18.99.
I asked CDW & Misco sales reps how LS120 disk sales were doing. They replied due to lack of interest/consumer unawareness they haven't sold ***ANY***.
Folks, can it get any clearer. As I said many times before in my previous posts the longer O.R. Technology, Compaq, 3M/Imation and MKE
delays the LS120 consumer market roll out, IMO its doubtful that the LS120 will ever become the next megafloppy standard. Iomega ZIP is just too far ahead in terms of recognition (both consumer & industry), sales, proven performance, reliability & ease of use, cross platform versatility, impressive distribution and superb marketing. As long as Iomega can further reduce the price of the Zip drive to both consumers($99) and OEMs($50-75) and also the price of Zip disks themselves ($10 per disk) the barriers to entry for Iomega's competitors to become the next floppy standard will prove increasingly more difficult.
To all Iomega Longs out there - don't be down because of the current
stock price, just remember the Business Week article which mentioned if Iomega ZIP becomes the next standard the growth potential is a staggering 40 million units.
Hyun Yoo
LONG on IOMG |
