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

To: Brian Heath who wrote (39696)	12/13/1997 12:59:00 PM
From: Frank Drumond	Read Replies (3) \| Respond to of 58324

>IMO, the first time we see a major OEM announce the inclusion of the Sony drive in thier system, IOM is in trouble. What would be the signals ahead of an announcement? (I know, It may never happen) HiFD vs. Zip These are the points people should keep in mind on this issue. 1) Iomega has the most experience with the Fuji ATOM media. 2) Iomega has stated that they have had proto 200 MB drives for over a year. 3) The new Clik is twice the capacity of the original n.hand announcement. n.hand was spec'd as Zip compatible at the time therefore Clik represents at least a doubling of Zip capacity. 4) A high capacity 200+ MB drive that can read and write a 100 MB Zip disk would be more desirable than a floppy compatible drive. 5) Iomega will have an easier time selling a 200+ MB drive to their current OEMS than Sony will. 6) Iomega has already run through several generations of the Zip drive so they can bring better economies to the product than Sony can. I doubt very much that Iomega has taken a "deer in the headlights" reaction to the Sony announcement. My guess is that by the time Clik ships that Iomega can respond to the the Sony HiFD. Think about this. By mid '98 as many as 20 million Zip drives will have shipped (maybe more). Iomega has a great opportunity to launch the "super-sized" Zip at that time and not only continue and expand their OEM business but also address a HUGE upgrade market. KE is very sharp in this regard. Instead of playing the SyQuest "drive of the month club" approach to product marketing KE is waiting until the last possible moment to introduce the next generation drive. This was/is necessary to cement Zip as a standard.

To: Brian Heath who wrote (39696)	12/13/1997 2:14:00 PM
From: Tom Gebing	Read Replies (1) \| Respond to of 58324

Brian and all - Long but informative to many. Lets get back to basics. It is amazing to read the logic that goes on this thread as well as others. The name of the game is current growth, new markets and new products. All at the proper price point directed to the masses. Brian writes : << "Allen: yes this is VERY positive. What would be the first signal this was to change, other than waiting for a OEM announcement. IMO, the first time we see a major OEM announce the inclusion of the Sony drive in their system, IOM is in trouble. What would be the signals ahead of an announcement? (I know, It may never happen) " >> Does this mean we should of sold when Compaq announced the inclusion of the infamous LS120 a few months back. I think we all need to realize that announcements don't always come true. The way to determine if there is a treat to one of the above, is to seek qualified sources ( not some flunky sales person in Bum f ,New Mexico. ). Iomega is in the mass market business. If you ask the average ( so called ) computer expert, most would steer you to more advanced products. This is the same thing that happened in the old stereo days. But the mass market goes to the products that do the job, at the right price, is a brand name and has service. Oh yes, widely excepted is important too. If you want to know what is selling go to the big retailers and spend some time talking to the store expert who answers questions, the cashier ( who rings up the sales) , store manager who orders the merchandise ( and handles problems) and most of all, spend some time watching what the customers look at and chat with them. Media advertising and store level merchandising are additional aspects. When I see a mass of Zips at Comp USA , I know the company recognizes it is a popular product and orders appropriately. Many of you have never worked in a retail environment and don't realize they have limited money for inventories. You don't buy large quantities of products unless they are selling like hot cakes. Maybe now you may realize , when you see 1 or 2 of a product , the odds are it does not sell well. There are a couple of fundamental basics to retailing. 1) Order what sells. 2) sell what you have in stock. 3) don't buy products in quantity that don't sell. 4) order to support the ads. When do you get out of a stock permanently? ! A) When the sales drop off because the mass market has started to move on to other products or lost interest. Not from announcements, but from seeing it happen. B) When the company stops expanding its market penetration. C) When the company stops introducing new products. I would be concerned if I saw proof that Sony took over with the OEMs (more then one or two) and it would have to be the big OEMs, and if Sony dropped the price to mass market appeal . If Syquest ever made manufacturing agreements ( like IOM has ) . Right now they are not in a position to produce sufficient quantities of any of their products to be a threat . If Click does not start to catch on within 6 months after it is available. These are some of my watch for areas, besides the mass market sales of IOMs current products. B.O.'s comments about tie ratios and 10 million announcements is so absurd. KE has stated numerous times ( in the CC ) that tie ratio information will not be published. I agree with him. If you want every leach company ( like Nomai ) to jump into your bread and butter , then publish the yellow brick road to the promised land. If you keep the info in-house then no one knows what they can steel from you. A good example is the Dram, Video and Audio chip markets. DSPs and Flash memory will probably be next. Proprietary is important in making a investment decision. But it does not mean others won't find a way to squeeze in. HP is going through that right now with their ink cartridges. Patents and copy rights are great but there is no guarantee that others can't move in. It comes down to who has the biggest wallet to fight for it. Battles of this nature result in lost profits to all , including us. Thus lower earnings. Is the world doomed? Who knows but right now Iomega is doing most of the right things and I plan to make the most out of it. Keep those (verifiable) channel checks coming , it helps in keeping our hand on the pulse. And don't fall for the BS posts that many would have you believe blindly. Long and strong. Regards, .

To: Brian Heath who wrote (39696)	12/13/1997 11:14:00 PM
From: HardMoney	Read Replies (2) \| Respond to of 58324

IMHO, according to the statements about price, being made by Sony,......I believe an eternal would be too expensive for OEMs. Right now I think I remember someone saying that the Zip is costing 60-75 dollars to the OEMs....and going lower....with the specs of the vaporware Sony drive....I would find it quite unlikely that Sony will be able to sell to OEMs at the right price point.Remember the best tech. does not always win ....look at MSFT. Infact the new drive from Sony/Fuji may just be a tactical ploy to get IOM to license Zip DISK production to Sony/Fuji instead of just co-branding... Frank