To: Rocky Reid who wrote (34262 ) 11/2/1997 11:34:00 PM From: Dale Stempson Read Replies (2) | Respond to of 58324
Re: "SparQ is True" Rocky, a couple of comments regarding the SparQ: 1) First of all, I agree with you that the rumors about the SparQ are almost certainly true and the drive is likely to be formally announced by Syquest for COMDEX. 2) Second, I'm surprised that many Iomega supporters do not appear to be concerned in the slightest about even the possibility of the product's existence. (Syquest will of course face major obstacles, not the least of which is actually shipping the product). 3) Third, If (BIG IF) we give Syquest the benefit of the doubt and assume they introduce the drive at COMDEX, achieve the rumored specs, hit the rumored price points, obtain the financing, do a marketing blitz, ramp-up manufacturing, avoid quality problems, ship the product and make a buck as a result... then the question becomes: How might this impact Iomega? I believe it is safe to assume the SparQ would not impact Zip sales. The Zip's established base, OEM acceptance, low entry price and compatibility with other Zip users, when combined are simply too powerful of a combination. So what about the impact on Jaz sales? Interestingly enough, the SyJet has struggled against the Jaz, even with excellent reviews, performance specs and price points. Would the SparQ fare better than the SyJet? Well, I believe it would. Here's a few reasons why: Price - The entry price and the cost per MB would be more than just a little bit less, it would be a LOT less. Specs - The performance specs are expected to be "near SyJet" with disc capacity a respectable 1GB. Marketing - Syquest is planning to mount a major marketing campaign, (it appears they've learned from their past mistakes). However, there remains one key issue that appears to have grown in importance which might keep the SparQ in check: Compatibility. The current installed base of Jaz users is now large enough to be a factor, perhaps a most important factor. In addition, we know Iomega is spending mega-bucks on R&D. There always exists the possibility the folks in Roy could respond with a counter-punch of their own at any time. For example: reducing existing Jaz costs and pricing to a level that is closer to the SparQ would probably be enough to keep the Jaz as the preferred product. IMO, the bottom line: If Syquest is able to execute perfectly and soon begin shipping the SparQ, the drive would probably sell very well and take a piece of the Jaz pie. Even in a best case scenario however, it would not be a Jaz Killer and would likely only slightly impact Jaz sales. Regards - Dale