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Non-Tech : Iomega Thread without Iomega

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To: Gottfried who wrote (8988)4/12/1999 8:25:00 PM
From: Ken Pomaranski  Read Replies (3) of 10072
 
<< Since Iomega now breaks out margins for each product, it has become less important to me whether some ZIPs are sold below cost. >>

False. It should matter a great deal. Think of the OEM and retail ZIPs as Product 'A' and product 'B'. Product 'A' has huge margins and product 'B' loses money.

In any company, If the trend shows that product 'A' is dropping in product mix with respect to product 'B', then management and shareholders should be concerned. Iomega (and the bulls) try to fool you by trying to make unit sales matter. They do NOT. If the units are mainly product 'B', it is immaterial AND deceiving. I laugh when you on the thread get excited over OEM percentages & unit sales. High OEM percentages (like 40% dell) mean more money lost, or not gained by having Iomega not sell the drives in the aftermarket.

The bulls on this thread should blame these RAH RAH cheerleaders for misleading statements NOT the bears. Cheerleading on no data, and without any regard for reality is far, far worse than any allegations brought against the bears of this thread. I'd hazard a guess that only 1% of the bulls do their homework, while 95% of the bears do.

(Sorry, but I got tired of the tirade of posts against the bears today with no supporting data..)

kp
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