>>Yesterday, I rationally described how a digital camera, flash and a PC could be used to cover 99% of the market, thereby rendering the expensive value proposition of the CLIK! useless. What did I get in return? The usual: personal attacks, 'your logic isn't the only logic', weird posts frantically defending the CLIK! with no better data presented. <<
Ken -
In no way do I mean the following to be a personal attack.
Do you honestly believe that your post yesterday contained valuable data? I don't remember any valuable data, just a description of a scenario you seem to believe describes the average camera user. I don't get how that constitutes anything more solid than what you refer to as "dreamland scenarios."
Do you really believe that calling a few stores and talking to a few people you know constitutes research or due diligence?
Also, I think it's silly to keep harping on the fact that OEM Zips are sold at a negative margin. The Zip business is the only thing keeping Iomega afloat, as you yourself have pointed out. How can that be? It's because the Zip business is profitable. And it's not only the retail Zip business that is profitable. OEM Zip drive losses are compensated for by disk sales to the computer buyers, and the net effect is positive on both the top and bottom lines. Thus, the OEM Zip business is profitable. This is not conjecture. It is verifiable by checking the available data and listening to what Iomega management has said in conference calls.
Of course, the company has lost money in other product areas, and they failed to control costs as they grew under Kim Edwards, so they have not made money overall for the past year and a half. But that wasn't because the OEM Zip drives were being sold at a small loss.
- Allen |
