Any info about Iomega (IOM)? Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Rocky Reid who wrote (51878)	4/3/1998 1:43:00 PM
From: Bill Lin	Read Replies (2) of 58324

Rock, what do you think if IOM trys to buy Castlewood? what if they can the 2 gig drive and try to make a 5.6gig drive? IMO the $15/gig price point is so far below existing pricing structures that it WILL severely hurt the zip and jaz markets. If IOM does not kill the orb, then can market it as the jaz MR. it is no wonder that with a blank sheet that Orb can make this product faster and better than IOM. The question is why Syquest couldn't. IOM has the legacy problem with jaz and jaz2. with the 2 disk design and the TFI heads, their cost structure is inherently higher than the 1 disk MR head based orb. (each disk is cheaper, but there are 2 of them. and tfi heads are cheaper, but there are 4 of them vs 2 or 8 vs 4.) Castlewood does not have a 50% margin on the $29 disks. I think their margin is only about 30%. so they will have to sell about 1 million units (not hard) to break even and maintain service and support. Of course if they do the jaz thing, they will be profitable before hand. I really think that if the Orb is really that good, that Castlewood would do very well by using IOM's distribution system by being bought out by IOM. BL

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next