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Non-Tech : Any info about Iomega (IOM)?
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To: Rocky Reid who wrote (39872)12/15/1997 12:29:00 AM
From: Dale Stempson  Read Replies (1) of 58324
 
Re: >>>However, how do you explain the fact that less than 5% of all new computers sold have Zip installed? And how does this translate into Zip being "The Standard?" Last time I checked, 5% is no standard.<<<

Rocky, I would explain the 5% rate as being the result of a great marketing plan. Iomega had to first create user demand and lower costs before it could go all out in its efforts to significantly impact OEM sales. It took the past couple years to put all the pieces in place. As a result we are now just beginning to see the fruits of their efforts.

The fact that OEM sales were up 60% in Q2 over Q1, and then again up another 60% in Q3 over Q2, coupled with the OEM growth to 35% of total Zip units shipped is clear evidence of their OEM success. IMO, the very fast and recent increase to the 5% inclusion rate indicates something positive is just starting to take place.

While I would agree that today the Zip is not "The Standard", it will of course be OEM sales that can make it so. Growing demand coupled with the release of the notebook Zip should prompt 4th qtr OEM sales to continue to grow dramatically.

IMO, the bottom line regarding the pursuit of Zip as "The Standard" lies with OEM sales which are just beginning to "rock".

Regards - Dale
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