Any info about Iomega (IOM)? Message Board

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

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To: AJRO who wrote (57243)	7/17/1998 12:40:00 AM
From: Ken Pomaranski	Read Replies (4) of 58324

Hi AJRO! In response to your comment: << IOM is accused of being a one product company....THE DISKS. I thought this was their business model in the first place? No one complained that Gillett only sells one product, razor blades. A more sound argument would be is the higher disk sales sustainable, etc. >> I would feel much better about Iomega if the disks were truly razor blades. They are not. Fact is, each user buys about 6-10 or so then stops. This is not a true razor blade model. I addressed this in a post a couple days ago. Take a look and let me know what you think! What bothers me is that ZIP is the only product that matters anymore. But what is WORSE is that they make less and less money on the drives themselves as they focus more and more on OEMs. I contend that the company cannot survive on the disks alone. (that is obvious if you look at earnings this quarter!) Sure, they sold alot of disks, but the big question is this: What do they have to show for it?? I see major problems and no sure way out. How can they increase penetration? They can't afford another AD campaign that doesn't work. The market doesn't really seem that elastic. Dropping prices won't really help anymore. My only question is this: (and no bull will answer this): How will Iomega magically start making money again? They can't create more demand, the market is saturating, and the shift is moving more toward non power users (OEMs) What fundamental shift will occur? If someone could answer this to my satisfaction, I will probably buy the stock again. Good luck! kp

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