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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Bearded One who wrote (33277)	10/24/1997 2:05:00 PM
From: Joon Song	Respond to of 58324

>>>> Message from Bearded One on Oct 24 1997 2:01PM EST Hey, how's Iomega going to make money with the same tie ratio but lowering the price of it's drive by 50 bucks? <<<< Even if the tie ratio stayed flat, they'll end up selling many times more drives and therefore many times more disks. Joon

To: Bearded One who wrote (33277)	10/24/1997 3:00:00 PM
From: Yikes	Respond to of 58324

> Hey, how's Iomega going to make money with the same tie ratio but lowering the price of it's drive by 50 bucks? < Could you please quote what I said so I know what you are replying to? The $50 price drop in drive prices come from better manufacturing. Shrinking 4 chips into one, saving chips and labor costs. Also, the lowered Asian currency helps. Yikes

To: Bearded One who wrote (33277)	10/24/1997 3:25:00 PM
From: Frank Drumond	Read Replies (2) \| Respond to of 58324

Oh, B.O. they are selling at a much higher rate now, both in terms of drives themselves and the tie rate is probably higher than most people think.

To: Bearded One who wrote (33277)	10/24/1997 4:09:00 PM
From: Cogito	Respond to of 58324

>>Hey, how's Iomega going to make money with the same tie ratio but lowering the price of it's drive by 50 bucks?<< Bearded One - Oh my God. I must call Kim Edwards immediately and point out the fatal flaw in the business plan. But seriously, BO, not only can Iomega make money after lowering the price of the drive by 50 bucks, but they have. If you were paying attention, you would have noticed that both gross and net margins have increased over the past year, even as the price of the Zip drive has gone from $199 to $99. In the meantime, the competitors for the top spot in removable storage keep slugging it out with each other, as Iomega widens its lead. This is an observable fact, not a supposition. - Allen