Young, I remember back to the days before the LS120 was introduced, the specs were great. But, when it actually came out it was 40% the speed of a zip. It seems to me that vapor is always scarier than reality.
IMHO, the letters of intent with Maxell etc, mean something like, "If you buy them, we'll make them." In contrast the MCI deal sounds firm in that they mention coming on line in Q4. IMHO this is the deal that KE was talking about at the press conference when he mentioned a deal "that would remove all doubts" as far as having sufficient capacity to supply OEMs.
On Swan/Mitsumi vapor drive:
1. Too costly:
What I heard was $130 OEM cost in volume. Will they sell enough to get the volume up to levels where they caould make money at the $130 price? Even if they do, by that time the internal zip will be selling wholesale for 1/2 that price. Internal zip is already $75 wholesale, if my info is right.
Custom head = expensive, zip head = std hard drive head
512K cache = expensive, zip cache (32K?)= cheap
Inherently complex design = expensive, zip is clean and simple.
Based on ~1991 patent = iomega knew about this technology when they decided to build the zip.
2. Too Late, way too late:
I have what I need, my customers will get what I have and what my vendors have. Installed base = you can't exchange data with your friends because you didn't buy a zip?
3. Is it faster? We shall see. Is it bigger? For now, but it's not out, much less ramped.
Ken
I pity the bug that runs under iomega's competitive shoe. |
