Any info about Iomega (IOM)? Message Board

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

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To: Martin L. Robbins who wrote (8148)	10/2/1996 7:19:00 PM
From: Ron Jones	of 58324

Martin, what if Zip drive dropped in price to $99 for 4Q, would they ship 2.5+million then? Or what would be the effect of a 200mb Zip drive announcement have on 4Q sales? (I understand they have 200mb zip drives working in the lab and they have 400mb zip drives on paper (theoretically possible)). I see prospects for Iomega just continuing to get better, and better. But timing could be critical, especially in releasing new models. I would suspect they will wait until 1Q next year to release the 200mb drive version so people won't put off buying the 100mb drive over the Holiday months. The other problem is, while they could meet their shipment estimates by reducing their drive price, they might cut into margins to do so---which would not be looked on favorably for their stock. Selling 2.5million drives without a profit is not the point--selling somewhat less than that profitable is the point--unless your business plan completely defers the profit to the consumables (the Zip diskettes). --ron

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