<< Iomega has failed to make the ZIP a 'necessary item' of a PC. This is what has me bothered. >>
Ken, IOMEGA doesn't really need to do this. All it needs is to make sure that whoever has a need for a cheap removable storage device
would go for a Zip. As has been mentioned here, there is always a need for a 'disposable' form of media for 1MB files, hence, floppies just won't disappear. They don't need to. If IOMEGA really wanted to replace the floppies, they would be selling 10MB, 20MB, 50MB Zip disks now in all flavors. Trouble is, they'll probably cost as much as the 100MB to manufacture.
The thing to consider: IS IOMEGA BEING FORCED TO CUT ITS PRICES? As long as they could control their own pricing, and let the demand as well as manufacturing efficiencies dictate this, then, the company will be OK with a forward PE of 20.
Syquest SPARQ is a threat, but for how long? Chances are, they'll be bleeding more red ink because of their fire sales. They'll eat into their other products. The demand is there but if they can't
make money, how could they meet the demand? Sony's HiFD is a threat but the same people who would opt out of ZIP drives/disks because of cost would opt out of it and just go with floppies. |
