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Non-Tech : Any info about Iomega (IOM)?
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To: AreWeThereYet who wrote (37415)11/25/1997 2:35:00 PM
From: Michael Coley  Read Replies (1) of 58324
 
RE: OEM vs. Retail Zip Sales Analysis - TMF Keeler **ON TOPIC**

Here's one of the more interesting messages from The Motley Fool's "Iomega In Fooldom Today":

Subject: Re: A nice aside...
Date: Mon, Nov 24, 1997 15:44 EST
From: TMF Keeler

In the category of For What Its Worth ;-)

Iomega sold ~4.3 million Zip drives as of 1/1/97. The OEM sales for the 3Q96 and 4Q96 were 10% and not appreciable before that. 1995 Zip drive sales were ~0.8 million. Using those figures, I figure IOM sold about 200K OEM Zip drives as of 1/1/97.

From 1/1/97 through 11/97, Iomega sold an additional 5.7 million Zip drives. As of 11/97, 20% (estimated) were OEM drives; or about 2.0 million OEM Zip drives sold total. For the period 1/1/97 through 11/97 Iomega sold 1.8 million OEM Zip drives and 3.9 million retail Zip drives.

So, retail Zip drives look to be on pace for around 35-50% year over year growth in units (5.5 million vs. 3.5 million). OEM Zip drives look to be on pace for 1,400% growth (~3 million vs. 200K).

Not sure what this proves beyond the fact that much of the unit growth in Zip drive sales is coming from OEMs. I'm sure we all knew that already. Retail Zip drive growth is also stronger than I would've thought for a 3 year old computer peripheral. I would expect much of the unit sales gains in 1998 to come from the OEM channel. This would mean greater SKU inclusion at Dell, Compaq, IBM, and NEC/Packard-Bell. Laptop Zip drive sales will also open a new sales channel that was not previously available.

- Michael Coley
- i1.net
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