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Non-Tech : Any info about Iomega (IOM)?
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To: Gary Wisdom who wrote (56091)6/13/1998 11:12:00 PM
From: Rocky Reid  Read Replies (3) of 58324
 
>>But, what really, really, really bothers me is how come everyone else in the world can produce these things and make a profit with a much lower MSRP (ok, maybe not Syquest), and Iomega can't?<<

Because Iomega is more interested in building pretty new buildings instead of R&D and cost-cutting. Iomega also has to pay high American salaries to Executives and regular workers. And to top it off, they are most adapt at spending huge amounts in Marketing.

Iomega reminds me of the arrogance displayed by the American Car Industry in the 70's. Build and market crap that is unreliable while the Japanese start importing reliable, cost-saving cars at a good price. From what I remember, the Japanese kicked our ass.

Castlewood's production is largely being handled by Japanese Aiwa. And Japanese firms are going to be leaner and meaner in this business. With the currently terrible Asian economy, Asia and Japan are going to pare down and streamline their operations like gangbusters. This will put a strain on competing American firms like Iomega. The Yen is trading at 145 to the $ right now. This puts Japan in a great advantage price-wise when selling products in the American market. It also makes American products sold in Asia/Japan horribly expensive.

Castlewood's Orb is coming out at the right time. Interest in Orb is absolutely huge. I want one. It looks like I'll have to stand in a long line to get one though. Sigh.
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