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

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To: Michael Rick who wrote (7943)9/27/1996 11:36:00 PM
From: Cogito   of 58324
 
Hi, Michael. This is really to Ken Pomeranski.

Ken, there's one thing that bothers me about your conclusions about why the Zip can't become a standard.

You keep acting like the price of the thing to a computer maker is going to be a constant over time. It isn't always going to cost an extra $55 to put a Zip in place of a floppy. As far as that goes, I'm not sure it costs that much more now. Where did you get your pricing for large quantities?

I don't think anyone would argue that the Zip will replace the floppy in less than two years. Well, having said that, I'm sure I'll hear from those who would argue just that. But I certainly don't think so.

In the next two years, the cost differential between a Zip and a floppy will change dramatically, you can be sure.

One other point. You say Iomega doesn't make any money from the Zips they sell to OEMs. I don't think you're stating a fact, there, but a guess. And I honestly doubt that it's true. Sure, they make less selling to an OEM, but why would you say they make nothing? Are you guessing again?

- Allen
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