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Non-Tech : Iomega Thread without Iomega
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To: Ken Pomaranski who wrote (9197)4/17/1999 3:33:00 PM
From: Rocky Reid   of 10072
 
>>Next, it is becoming apparent that ZIP will never replace the floppy. <<

Agreed. The push to get more Zip250 drives in the computers confirms this. Iomega is no longer trying to push Zip100 as "The Standard". Zip250 disks cannot be used in Zip100 drives. And Zip250 drives cannot long format Zip100 disks. If anyone here still holds making the Zip a floppy replacement close to your hearts, call up Iomega yourselves and ask whether they now want Zip100 or Zip250 to be the "Standard." You can't have both. (For those of you who claim you don't long format, well,lots of people like myself try and long format drives whenever I possibly can. It really helps keep your drive running as fast and dependably as possible)

>> Iomega has admitted that OEM ZIP 100s have 'negative margins' (another term for 'losing money hand over fist') and this is when Dell sells them as an add-on for $79. The chance that a PC vendor will dump their $18 drive for something that costs more is ludicrous. <<

Especially with $500 (and less) PC's. A Zip250 could cost about 50% of the whole computer CPU! In regards to OEM Zip250's current positive margins, don't forget that Zip100 also used to have positive margins. As Zip100 is phased out, expect a drop in OEM Zip250 margins as well. Don't be too suprised when a year from now, Iomega is lamenting that OEM Zip250 also has "Negative Gross Margins."

Iomega needs retail sales. OEM sales are killing Iomega.
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