Let's say it's $50 OEM for CLIK!. Now they have to get 20% of the digital camera market to get 100m in revenues! See! It's the ZIP 'treadmill' effect again.
I believe that there is a flaw in your logic. You are only looking at profits off of the drive itself. As we all know, the profit is in those "Sweet, high margin disks" (to steal another poster's line).
Also, can Iomega make a profit at $50 OEM?
I think that they should be able to, but without a peek inside their operation, we can't know for sure.
Also, (in case you hadn't noticed) while turning a profit on the drives is nice (and surely helps the bottom line somewhat) I think the real money is to be made on the disks. What was the old saying? "It's the Disks ......"?
The digital camera market is much smaller than the PC market, and is not really given to 'options'.
Agreed, that is why I am focused on the built in drive. People will pay a little extra up front to have the features that they like, but somehow it is much harder to part with the money later for an 'add on' device.
OEM price for floppy drives are around $18.
OK, if we take the difference between $18.00 and $50.00 we get $32.00. I think the people that are shopping for a Mavica would be willing to pay an extra $32.00 up front for a 40Mb removable disk as opposed to a 1.44Mb disk.
While you might very well be right about Clik! being stillborn, imagine the possibilities if they CAN become the next film. That's what it is all about - right? Risk / Reward. I can't bring myself to see much downside risk at these prices, but if everything does come together, there could be a great deal of upside to this dog.
-Ken |
