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

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To: Ken Pomaranski who wrote (39646)12/13/1997 3:21:00 PM
From: Steve Wiz  Read Replies (1) of 58324
 
Ken,

I have to disagree with this one. This statement is defintely filled with flawed logic. Trying to measure whether disk tie ratios are falling is a task more suited for the actuarials. The perception that tie disk ratios are falling is only slightly real. Uncovering the bias in this statement is quite easy. To acheive an accurate disk tie ratio from the information you have gathered you would need to be able to back out disk tie ratios sold through retail only. This would be a difficult task because you would need to know how many Zip disks purchased were from those participants who bought a Zip through retail.

Iomega gives a couple of Zip disks away if a direct buying PC purchaser adds a Zip as an option on their machine. This would tend to bias the data in lowering overall disk tie ratios. Think of it this way. If Iomega induces a PC purchaser into adding an internal Zip, Iomega would have succeded in making their product a captive regime in the purchasers machine. Lowering overall disk tie ratios would be well worth having a Zip captive in a PC purchasers machine over the life of the PC.

I highly doubt that the PC purchaser would use only the 2 free Zip disks given free over the operating life of the PC. Inducing the direct PC purchaser into adding a internal Zip with the free Zips is money IOM shareholders would be happy to spend. See, Iomega is in a different position when it comes to internals. They must still seed the business or induce participants into adding Zip as interanls. Not all PC purchasers are as sophisticated as those on this board.
Good to talk to you

Steve
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