Any info about Iomega (IOM)? Message Board

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

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To: Herb Fuller who wrote (52845)	4/17/1998 1:19:00 AM
From: Rocky Reid	Read Replies (1) of 58324

Iomega has to be losing money on every OEM drive sold. Even if the Ad campaign never happened, IOM would still have not scored a profit. IOM can push Zips out the door. But at what cost? If they blow 50 million Zip drives out the door, this can still mean that they lose their shirt at Earnings. The demand for Zip is simply not there- thus Iomega has resorted to price cuts and rebate programs that inevitably bring margins way way down. Iomega is currently in a transition to a "demand-pull" structure. This means lower prices. And thus, lower margins. The same arguments that Iomaniacs use against SyQuest SparQ's profit/unit now apply to Iomega Zip.

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