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Non-Tech : Iomega Thread without Iomega

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To: Barney Dunn who wrote (1972)	10/6/1998 2:13:00 PM
From: Rocky Reid	Read Replies (1) of 10072

You keep on asking the same rhetorical question that I can't answer. I have no way of knowing what goes on in the heads of Compaq, etc. But the fact is, they already buy components from other competing computer like IBM and NEC, and Toshiba (among many others) all the time. There seems to be no problem here. And besides... It seems as though OEM internal HiFi drives will be made by Teac. And Teac is already a leading suppier of floppy drives to virtually every box maker now. Sony will more than likely make external HiFi units. If full retail price for 200MB HiFi discs are $13.99 (according to Fuji), then expect to be able to buy HiFi discs in a 10-pack for about $8 apiece everywhere. Maybe $6 apiece at places like Sam's Club or Fry's. Remember, full retail price for Zip discs are still $19.95. Zip and Iomega are in real trouble. If they try and match HiFi's lower prices, they will lose even more margins. And Iomega will suffer loss after loss after loss. Sony, Teac, and Fuji can keep prices low by subsidizing the HiFi product with a myriad of other hugely succesful divisions like Sony Playstation, Sony Records, and Sony Films (all hugely profitable). In a war of attrition, Iomega is going to lose badly.

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