>>However, I don't believe focusing on Iomega's big numbers is where attention should be placed. I submit, considering the present situation, it will be easier for Syquest to increase sales 25% than it will be for Iomega. And that my friend, is why my money is on Syquest and not Iomega. And it is why I claim Syquest will chip away at Iomega's market share regardless how meager the gain.<<
Dan -
If SyQuest does indeed increase its sales by 25%, that will be considerably less than Iomega's increase over the past year.
Or, to look at it another way, even if SyQuest increases and Iomega doesn't grow at all, but just continues to sell at present rates, then given their sales ratios, SyQuest will have chipped away a whopping 2.5% of Iomega's market share. If this were to happen, the entire market would be around 2.5% bigger (excluding other competitors).
All of which I believe illustrates the absurdity of worrying about what the hell Iomega is doing. What's important to SYQT holders is SyQuest finding a way to stop the bleeding and start making money. Maybe they've got the right formula now, and I wish them good fortune.
Iomega is actually going to help SyQuest.
If Iomega's ad campaign succeeds in educating consumers as to why they need removable storage, then at least some of those consumers will end up buying SyQuest drives anyway. Won't really hurt Iomega, and will help SyQuest.
- Allen |
