SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Iomega Thread without Iomega
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Rocky Reid who wrote (8962)4/12/1999 5:37:00 PM
From: D.J.Smyth  Read Replies (1) of 10072
 
<<And every single one of those OEM Zip drives sold at a loss to Dell.>>

nearly 25% of zip sales to Dell (and resold to the public) are sold separately from the box. thus, the overall margin mix to dell on drives has been flat to slightly positive. your statement implies that all drives sold to Dell are sold at a negative margin, which is incorrect. Those zip 250s which are included in each box (not sold separately) are sold at a positive margin, and the zip 250s sold separately from the box receive an even higher margin yet. the relative drive cost of the zip 100 to the zip 250 isn't significant; yet the retail cost more than compensates for any increased production costs.

relative to negative margins; the margins are a function of the overall cost of production of the zip. Glore has stated that it was his intention to lower the cost of production on zip (recall that the first through third quarters of 98 the zip was using two times more "chips" to function than was being used in the last quarter of the year - thus, we've only witnessed one full quarter of zip production with the lower cost zip models - less chips also equals less labor for installation, etc.) to improve the margins. last quarter showed that IOM had the ability to lower margins further. Glore was expecting further improvements in zip drive margins, as was Flaig. we'll see if they succeed.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News