Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : The New Iomega '2000' Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: John Solder who wrote (771)	6/18/1999 11:08:00 AM
From: Rocky Reid	Read Replies (2) \| Respond to of 5023

>>This is the second quarter in a row that she indicated "Huge" sales and backorders,<< One can give Bateh the benfit of a doubt when it comes to unit sales. But unit sales mean squat. What matter are the margins, and Iomega's margins suck. They lose money on their most important product, the OEM Zip100. The margins on Zip disk sales are decreasing rapidly with price cuts, and Fuji's cut of each disk is unknown. Iomega can only keep up unit sales by cutting prices, and the margin area between where Iomega sells Zip disks, and Fuji's cut of each disk, grows closer every day. Fuji could be charging Iomega $2 for each Zip disk, for all we know. *Bateh's backorder sales numbers for PCMCIA Flop suck, if you do the math. But one can glean only rough revenue numbers from this. Once again, margins are unknown, but bear in mind that Iomega could be selling it for a loss just to try and get them out the door and established.