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Non-Tech : Any info about Iomega (IOM)?
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To: Michael M who wrote (53255)4/21/1998 1:44:00 PM
From: Kevin Linder  Read Replies (1) of 58324
 
If backward compatability was so important.........................

My cassette player would accept 8-tracks.....

My 8mm Camcorder could still use VHS tapes...........

New stereos would come with phonographs........................

The problem of backward compatability and the "new standard" to replace 3.5 floppies is misunderstood and overvalued.

International Data Group predicts PC unit shipments are going to reach 93 million this year. Iomega, at best, can produce 12-15 million Zip drives. Licensees (MCI and NEC can produce about another 125-150,000 units per month.) Iomega cannot be a standard this year because of production shortfalls.

If you think I am bashing Iomega and being bearish run the math on Syquest trying to produce 1-2 million Sparq drives per month. There is no words to describe how ugly that situation would be.

This may be why Iomega is looking for a production/operations oriented CEO. However, Iomega does not have the cash to multiple their production facilities by a factor of 7-8. Neither would the licensees increase production in an environment where there is not the current impetus to replace te 3.5 floppies.

There is an answer. SEG and WDC have been laying off people and closing plants. Both companies have experience at production capabilities and use much of the same processes. Hopefully management at any of these three companies will notice the capabilities.

Kevin Linder
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