Eric, re:"If Iomega gets greedy, then another company, probably several, will come around and take their market. Not in the short term, but definitely in the long term."
Yes, no argument from me there, cf. Apple, IBM, Hayes, and any number of high-tech companies. But I was referring to the people who state flatly that if and when the Zip/Jaz become standard that the OEM's will squeeze Iomega to where they will make absolutely minimal or NO profit. I don't see that happening. Especially if they keep cutting the price on their own and discouraging competition. After all, Intel is still making a good profit on their chips using a continual price-reduction strategy and almost everybody uses them (although I wish somebody would use Cyrix, I've got to get to break-even on that one sometime).
Because management has stated so, I have to believe that they are still making an acceptable profit on the drives AND disks. Why must they be essentially forced out of business just because their product is popular?
Cameron |
