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


To: Philip J. Davis who wrote (37119)11/23/1997 6:10:00 PM
From: Brendan2012  Respond to of 58324
 
>>As long as the margins on licensed disks are equal to or higher than those produced by Iomega, why not license?<<

It's not just margins but total profits. IOM would lose likely lose revenue if Nomai were going to produce lots of disks, thus possibly negating an increase in margins.

Brendan



To: Philip J. Davis who wrote (37119)11/23/1997 11:39:00 PM
From: Cogito  Respond to of 58324
 
>>>>I wanted to point out that Kim Edwards has stated repeatedly that Iomega will not grant such licenses. He has said that other companies will be licensed to produce drives, but not disks.<<

Do you remember when he said this? I don't recall.<<

Philip -

I remember hearing this from more than one conference call last year.

I think the point is that licensing revenues would never be as much as the profit from selling the disks. If a licensee were paying Iomega a fee that equalled Iomega's profit on disks, then the licensee would have to charge a much higher price to make money.

- Allen