Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Steve Wiz who wrote (7080)	9/13/1996 12:09:00 AM
From: Young D.T. Nguyen	of 58324

Steve, I see you are quite concerned about the MCI deal and its implications. I believe IOMG is doing exactly the right thing. To establish the Zip as a new floppy standard, IOMG must essentially give the Zip drive away to big manufacturers like MCI who can produce great volume at perhaps significantly lower cost than even IOMG can do. There is no money in the Zip drive for IOMG, the money is in the disks. The more drives sold, the more money IOMG will make, and the higher the net margin - no matter who sell the drives. MCI can really help lower Zip price substantially and establish a beach head that the Ls120 and Mitsumi drive can not break through. I would certainly give the Zip drive away to other big manufactureres like Seagate if they want to make Zip drives. Free up capital to reinvest in R&D, lower inventory cost and risks of holding big inventories, and make tons of money with essentially no efforts with Zip disks. For the Zip to become standard, there must be huge source of supplies of Zip drive, and IOMG certainly can not produce them all. And the OEM will not trust single source supplier. There must be many suppliers and price must come down. I would be worry if IOMG gives away Zip disks. Young

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