Any info about Iomega (IOM)? Message Board

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

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To: Rocky Reid who wrote (39902)	12/15/1997 3:48:00 AM
From: Dale Stempson	Read Replies (1) of 58324

Re: >>>The price is outrageous. Even more so than Jaz2, which if Castlewood's Orb 2.1 Gig hits the shelves as planned next Q, will cause Jaz to suffer a quick and violent choking death as it's dragged kicking and screaming to the bargain bins.<<< Rocky, I am concerned about the impact of both the Syquest SparQ and Castlewood's Orb on Jaz sales. I can't argue the significant advantage with regards to cost per meg of storage. These products will certainly test the Jaz. We know that Jaz has a few things going in its favor including great marketing, good specs, brand name recognition, growing sales and a very large installed base. It will be interesting to see just how important these factors are as the SparQ ramps up and the Orb is introduced. While I doubt under any circumstances that we'll see the "quick and violent choking death" you forecast, I do believe that unless Iomega starts throwing counter punches, these new products could grab a lot of market share. I am waiting to see what KE's response will be. It would seem that at least a Jaz price reduction would be in order here. With the Holidays already here and no Orbs and few SparQs available, I doubt we'll see any changes until after Christmas. BTW, it just occurred to me that dropping prices during the week after Chistmas might very well be a good time to do it. I could understand Iomega taking a charge this quarter for price protected product in the channel given the expectation of record sales and revenues. I will point out something that's interesting to me: Syquest has chosen to continue its strong promotion of SyJet while offering the SparQ. They've indicated a belief that the SparQ targets a different market segment. If their research is correct, I would assume that the Jaz would also not be impacted. Regards - Dale

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