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: Bobo Bear who wrote (3533)	11/29/1999 8:20:00 AM
From: David Colvin	Read Replies (1) \| Respond to of 5023

From that CD-RW article, HP is moving to CD-RW and I assume displacing Zips from their PCs. Bobo, here's some thoughts....Iomega is on record in recent conference calls as saying that they have had to "allocate" Zip drives due to ongoing component shortages. I'm not saying this is true but it's just possible that because of these constraints Iomega simply cannot supply all the OEM demand for Zip drives and still maintain a "healthy" availability of retail external Zip drives in myriad configurations. Since Iomega has said that one of their OEM customers (either Dell or Apple, likely Dell) ships nearly 50% of their machines with Zip drives installed I would imagine that Iomega would not want to upset that relationship. This could leave other OEMs essentially "out in the cold" in a position of less priority. Early in the history of Zip drives I distinctly remember HP as being one of the very first OEMs to include a Zip drive in one, then several of their configurations. Now they mysteriously don't?....perhaps because they can't get a commitment for the volume they want. I also remember seeing Sony machines with built-in Zip drives and they suddenly stopped. Compaq started out with the LS-120 and eventually they were generally replaced with Zip drives. IBM was also an early adopter, even slapping their name on Zip drives, and they are now going to stop selling IBM PCs in retail stores after losing billions in that market segment without quite knowing why. Micron and all manner of other "second tier" OEMs offer the Zip as either a standard configuration or an option in their machines. Altogether, it's just possible that the real demand for Zip drives is overwhelming. Seems pretty silly, doesn't it? Nearly five years since the introduction of the Zip drive Iomega still cannot meet the demand? Whose fault is that?....Iomega's fault for not developing viable second sources and not focusing on controlling all component suppliers early in the game! This makes sense as HP is a CD-RW maker. So the question is, are other PC makers going to follow HP lead? I obviously think they will be. Tell that to Dell and Apple! Just because HP "makes" (I believe they actually sub-contract their manufacture) CD-RWs doesn't mean they should or would try to sell machines that don't give the customer what they want.....that's a quick way to lose lots of market share. Dave