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Non-Tech : Any info about Iomega (IOM)?
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To: Dave Krishna who wrote (40984)12/20/1997 1:45:00 AM
From: William R. Polk  Read Replies (1) of 58324
 
Here is something that I do not think has been discussed in a while.
As I understand it, you need two things (besides the media) to make a zip disk. You need a servo-writer and a Thames machine (to assemble the disk). Each Thames machine costs around $500,000 and a servo-writer costs around $100,000. A Thames machine can support 15-20 servo-writers. Each disk takes 2-3 minutes to "write" with the servo-writer, so you can produce 20-30 disks per hour per servo-writer. You can do the math yourself, but my calculation is that for roughly $2,000,000 (not including media costs), Nomai could set themselves up in business to make about 2.6 million disks per year. As you can see, making disks requires a significant initial outlay of capital. Quite frankly, Nomai is not in the financial position to produce "a ton" of zip disks (even assuming they get past the legal difficulties). They would need some major financing.

Regards,

Bill
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