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Non-Tech : Iomega Thread without Iomega
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To: HardMoney who wrote (4023)11/14/1998 12:32:00 AM
From: Rocky Reid  Read Replies (3) of 10072
 
>>What could possibly be IOM's rationale to release a CD-RW drive. It doesn't fit their business model.<<

CD-R fits the "razor blade" model better than Zip. Once a razor blade wears out, you must get another. Once you finalize a $1 650MB CD-R disc, you cannot write anymore to it. You must buy another CD-R disc. This is why sales of blank CD-R discs are around 200,000,000 discs every 3 months.

You can use a $10 Zip disc over and over and over again. Some people have no need for anymore than 1 Zip disc. This is why Zip discs have sold only just over 100,000,000 units in 4 years time. Not nearly as many Zip discs have sold compared to CD-R discs even though there are presently about 3 or 4 times as many Zip drives out there as compared to CD-R/W drives.

Therefore, CD-R is the REAL razor blade model in the drive business. Zip is just a wannabe.
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