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To: Dale Stempson who wrote (3224)	11/4/1998 10:58:00 PM
From: Troy Shaw	Read Replies (1) of 10072

Dale, Allen, Here's the statement that I find most laughable in the article: ------ "They need a big installed base of razors to sell the blades," Rosencrans explained. "Their business model may prove to be fundamentally flawed-- ... That same strategy hurt SyQuest, according to Amatruda. "SyQuest went after a larger base with its low cost [drive], but it became increasingly difficult to sustain it, as we all know." ------ I don't know how they can equate Iomega's "breaking even" on a drive sale, with SyQuest's shareholder sponsored "drive charity" program. Iomega's Jaz product line was profitable last quarter, and without SyQuest's irrational give away, it would have been profitable the previous two quarters. That is what makes SyQuest's demise important to Iomega, IMHO. I'm amazed at how many SyQuest followers thought that the SparQ was such an excellent product. If it had been sanely priced, it would have been no more than a mediocre product at best. If selling a product below cost makes a great product and a great company, then why didn't SyQuest sell $100 bills at $80 each. Now that would be a product that everyone would buy -- great product!

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