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Non-Tech : Any info about Iomega (IOM)?
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To: Rocky Reid who wrote (40539)12/18/1997 3:09:00 PM
From: Ken Marcus  Read Replies (2) of 58324
 
Rocky says >>Sony will hand them the rest in the low-end when Sony HiFi ships.<<

I disagree:

Sony drive will have cost disadvantages because of their desire to have backward compatability with the 1.44 floppy in one drive.

Iomega will have shipped 15 to 20 million zips by the time the Sony HiFD is out. Emerald research, last I heard, does not expect the drive to be out till late 98 early 99. Much too late.

What advantages would the Sony drive have:

Backwards compatability? This is meaningless in most non-laptop computers sold today since the cost of having both a floppy drive and a zip is less than the proposed Sony combo drive ($250?)

Larger size: We know for a fact that Iomega has a 200 meg zip working and has had it for a long time. If the Sony drive comes out, it will compete against a 200 meg zip that is backwards compatible with the rest of the power user installed base of zips (15 to 20 million).

As the installed base of drives increases, the annuity from the zip disks will increase. This will allow Iomega to subsidize the price of the drives that it ships to OEMs. Currently large OEMs are paying approx $47. This cost is planned to decrease by 1/2 according to KE in the last conf call.

The marketing team in charge of the HiFD is the same team that is/was in charge of the Sony Minidisk. The Minidisk has not been a standard setting success.

Ken
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