Any info about Iomega (IOM)? Message Board

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

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To: Gary Wisdom who wrote (56091)	6/14/1998 8:38:00 PM
From: JP Sullivan	Read Replies (4) of 58324

I agree with what you say, and would like to add that IOM owns the plant that produces the drives and (I think) the disks as well. In contrast, Castlewood is having the drives and disks made by third parties and yet it is able to earn enough money (I assume so, since it really is too small to play loss leader) to allow it to price the ORB and the disks at such attractive levels. The biggest concern I have is in the price of the disks. At $10 a pop, IOM should be raking it in, but that does not appear to be the case. If Castlewood succeeds in bringing to market a 4-6GB disk for $10, where do you think the Zip will end up? (At $10 for 4GB, the cost per MB is 0.2441 cents! The Zip disk would have to be selling at 25 cents a piece to achieve a comparative unit cost.) It would seem that the ORB represents a significant threat to the Zip market and is deadly to the Jaz market. Heck, it will definitely eat into the hard drive segment. I wonder how Iftikar does it.

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