SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Any info about Iomega (IOM)?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ken Pomaranski who wrote (42834)1/8/1998 9:54:00 PM
From: Steve Wiz  Read Replies (1) of 58324
 
Ken,

I would tend to agree with your perception Ken but an event or events
have materialized that might give Iomega its cost break so desperately
needed to standardize Zip on pc's. As we know, 1.44 floppies cost pc
oem's, what, $10-$20 apiece. When the Zip first came out they shipped to OEM's at around $75-$90 apiece. At these prices it would be virtually impossible for Zip to standardize especially with margins
shrinking so fast on pc and their convergence to sub $1000.

Going back to the statement about events, the events I'm talking about is the collapse in Southeast Asian currencies. If you could only see in real time as I what has happened to these currencies it has been
awe inspiring. The currency that influences this board the Malaysian Ringgit has begun yet another free-fall. At one point last night we watched the Ringgit hit a intra-day low of 4.880 to the dollar. Since most if not all of Iomega's manufacturing costs are in Ringgit now, as
the Ringgit continues its nosedive, Zip costs dive along with it. This is the one event that has materialized that has fundamentally reshaped Iomega's ability to lower cost structure enough to become competitive with the 1.44.

Ken, with the Malaysian government regime following the lead of other dogmatic regimes such as Indonesia, the Ringgit could very well fall even lower, maybe to the 5-6 range vs dollar. Based on a 4.75 to the dollar rate, IOM could sell Zip internals at $45 or lower. Don't forget also that this latest fall in the ringgit has started in 1Q.

Steve
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News