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Non-Tech : Any info about Iomega (IOM)?
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To: Michael Coley who wrote (58051)11/25/1998 3:36:00 AM
From: JP Sullivan  Read Replies (1) of 58324
 
I think they'll keep Zip100 around for a while--at least until they get the next line of Zip ready for production and the Zip250 costs way down.

I wonder how much more expensive it is to manufacture Zip 250 drives and disks. Does anyone know how different the guts of the 250 are from the 100? As far as disks go, I can't imagine them to cost that much more to make, since materials are basically the same; perhaps the processes and equipment required to produce the disks are new and therefore have to be expensed off initially, but I would imagine that the margins of the 250 disks at current prices are significantly higher than those of the 100. If indeed the 250 disks cost only marginally more to make (or maybe even the same as the 100s), IOM will have a lot of latitude with pricing when it comes to a showdown with the competition.

I agree that IOM is likely to keep the 100 around for quite some time and milk it for all it's worth, while earning better margin$ with the 250. On a more remote note, the market may currently perceive the 250 disk to be a bit of an overkill since fewer files (even graphics) require that capacity at this time. Naturally, that situation is will change in the future. Therefore, IOM has time to let the 250 work its way into the mainstream audience before pulling the plug on the 100.

Winston
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