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Non-Tech : Any info about Iomega (IOM)?
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To: Dale Stempson who wrote (48902)2/26/1998 10:08:00 AM
From: Les White  Read Replies (1) of 58324
 
>>It's a screw up<<

I think they screwed up the 30% discount, too. The author seems to imply that If Nomai can market their zip compatible disk that it would result in at least a 30% drop in disk prices.

I think this is a bad assumption. Nomai will sell all the disks they can make at the highest price they can get if able. Since Nomai has limited capacity which for now is prevented from growing they will price up to the market and not bring the market down to them. They will sell at whatever discount to the market that consumers will be willing to pay for taking a perceived risk with their data and drives. If that turns out to be 30% then that will be Nomai's loss not IOM's. Latest posts show Nomai offering disks in bulk @ $8.50.

IOM's losses should equal Nomai's manufacturing capacity and if this capacity remains fixed then it will become a diminishing percentage of total disk sales as demand continues to grow.

I agree that an unfavorable Nomai ruling could have a short term negative effect on stock price but I think fundamentally it is not the big risk it is being made out to be.

If Nomai can beat all the patent issues, reproduce the retroflector, and buy all the disk production machines they want, then we'll have a fundamentally different picture.

This battle is far from over.

Les
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