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

To: D.J.Smyth who wrote (3217)	10/19/1999 8:31:00 PM
From: Ken Pomaranski	Read Replies (2) \| Respond to of 5023

<< ken, it's not, necessarily, the number of zip disks sold that is important >> I respectfully disagree. In my mind, the future of Iomega depends on the ZIP razor blade model. They use these 'razor blades' to fund all other investment in the company. Now, how can one assess the health of the ZIP razor blade model? First, what does the 'razor blade model' really mean? A working razor blade model would show a linear growth of unit sales of disks based on the installed base of ZIP drives. The is no evidence of this in the Q3 report. IN FACT, it shows a very depressing trend: That in order to keep the number of disk sales constant, you must double the installed base year over year!!! This is VERY, VERY, bad if this trend continues. In my mind, this was the WORST report ever for Iomega, but not many realize it. It shows that there is very little support for future growth. Just wait until Dell puts the squeeze on Iomega a bit more! This can get much worse... kp PS: I bailed on a stop right after Iomega 'pre-announced'. I couldn't believe they pulled this again. This can be a great trading stock. All you have to do is watch the volume.