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Technology Stocks : SYQUEST

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To: Steven Fischer who wrote (4600)11/1/1997 2:13:00 AM
From: Cogito  Read Replies (2) of 7685
 
>>Being one to always go for the companies in a temporary rough spot, Syqt looks better management wise than it ever was..if the rumors are true about their new products both IOM and any hard disk maker best watch out.<<

Steven -

Management looks as if they might be doing a better job than their predecessors, but they seem to have missed one very important point about the removable storage market.

The point is that obsoleting your own products on a regular basis is no way to build market share. As someone else posted just before your post, the compatibility-across-product-lines issue with the new products will be important.

One of the chief benefits of removable storage is that you can take your data with you without having to take your drive and/or computer. Which is why "setting the standard" is so important. That's why Iomega has been so careful not to release the 200MB Zip drive yet. Because they know that setting a standard will yield greater long-term benefits in the form of disk sales.

Long term success in the computer business is not about coming up with really cool, gee-whiz devices with great specs. It's about providing products which meet a need, at the right price point. And particularly in the case of removable storage, it's important to most consumers to have what most other people have.

Rocket can't possibly be compatible with SyJet, because it uses a totally different read/write technology. If the alleged SparQ drive is not compatible with the SyJet's disks at least, then it will join forces with the Rocket to kill SyJet. And then there's supposed to be a 600 dollar, 2.5 GB SyJet? How does that fit in? Offering too many choices is confusing to the consumer.

The new SyQuest management may be great managers, but I can't see any evidence that they understand the market they are in.

- Allen
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