Dale and Sowbug, regarding 2 points:
1. Dale, I have never trashed the product itself. I have only spoken to the company and financials in my posts. I have no opinion as to the quality of the Sparq. I have seen both good and bad reviews of the product. That is not the issue. As to taking sales away from Jaz, who knows? There's room enough in the segment for more than one player.
2. Sowbug, of course the same economies of scale that affect CD-R could affect the removable disc industry, including Syquest and Iomega. However, who do you think this would affect most? Iomega, that sells millions of drives and many more discs each year or Syquest, that is looking to sell 50K drives in an entire quarter? I would have to admit that I sincerely doubt Syquest is selling either the drives or the discs at a (significant) profit. Obviously, with their production level, if they are making profit, then Iomega must be making a HUGE profit off their discs/drives, considering how much more they are selling them for.
What Syquest shareholders should know is if Sparq ever takes any significant market share from Jazz sales, Iomega will quickly lower the prices of both Jaz and the discs. However, until that happens, there is no reason for them to do so, as sales are excellent for both Jaz and Zip.
Remember, Iomega currently has many manufacturers sell Iomega products and currently reaps the benefits of these economies of scale. Syquest has a very, very long way to catch up. |
