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

To: Dale Stempson who wrote (41158)	12/21/1997 5:57:00 PM
From: Gary Wisdom	Read Replies (1) \| Respond to of 58324

Dale, re: CompUsa clerk's statement Dale, Of course I can't verify that statement. It came from a CompUsa source. You know their history. But, consider this. In my post yesterday re: CDW, the guy there told me that their cost on the Zip discs are $10 each. Isn't a pattern starting to emerge here? Retailers and mail order houses don't make squat on Iomega products for the most part. They sell so well that they have to be competitive on price in order to keep people coming back to them for other stuff. It's just like diapers (sorry to intrude on your domain here Rock). Most grocery stores lose money on diaper sales. They have to sell them at cost because they are such a visible item and something that mothers buy so frequently. My post re: the CompUsa clerk's statement was made to reinforce to those on the thread the pricing power that Iomega has. They are THE market leader, and do not have to discount to compete with Syquest. Look for new promotions coming from Iomega in 1998 first quarter to stimulate market demand for removable drives. However, they are smart not to discount now because there is absolutely no need to. Also, I noted that there are no internal drives on the shelves at CompUsa (nor have there been any for about 3 months). While I am unhappy about this, this should tell you that they are producing at capacity, or else the internal drives would be on the shelf. This is a very positive sign. With capacity exceeding 3 MM/quarter, and KE saying in the last cc that VARs were "hoarding" drives in the last quarter, sales will be outstanding this quarter. Guaranteed.