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Non-Tech : Iomega Thread without Iomega
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To: BeachBum who wrote (7517)2/19/1999 1:01:00 AM
From: Rocky Reid  Read Replies (2) of 10072
 
>>Our resident bear seems to be saying there are large profit margins on Clik! drives.<<

You are confused. You mistake Top-Line revenues with profitability, which is the bottom line.

By bundling Flop! drives with old digicam models (that the brand new PMA announcemnts are replacing), online retailers can keep the prices and bring the cash in, despite taking a hit on profits. But they do this because least top-line revenues look good to investors and creditors.

Conclusion: I in no way said there were any profit margins at all in Flop! In fact, there is no real way of knowing if Iomega is realizing any profit at all on Flop! drives. Iomega has a history of selling drives at a loss, and Iomega's desperation to get Flop! accepted may involve taking a loss on them. But we shall see.
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