>>The problem I have is that Iomega, over the past months, has seemed incapable of ramping up production to the point where they dominated. It should not come as a surprise that Sony and others have come to believe that a mid-cap like Iomega is just not capable of dominating the market, in which case they themselves must come up with alternatives.<<
Francis -
Somehow I don't believe that Sony thinks that they are forced to come up with alternatives to Zip because Iomega can't meet demand. First, Sony has increased the number of computer models they sell with Zip as a standard.
However, I partially agree with your analysis, in that I believe that if Sony perceived Iomega as completely dominating the market for high-capacity removables, they would not try to enter that market themselves. Clearly, they see an opportunity and they are considering taking it.
Finally, though, NEC has actually begun to ramp production. I think this is the piece that has been missing thus far, with respect to companies being willing to commit to Zip as a standard.
>>As I have stated before, I believe it is time either for current management to be replaced, or for the company to be absorbed by another much larger.<<
So you don't think that growing the business from 150 million dollars a year to close to 2 billion, while increasing gross margins and profitability isn't good enough? KE and crew have failed to do the job? Isn't that like replacing a pitcher in the 6th inning when he has a no-hitter going?
- Allen |
