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

To: Cogito who wrote (41183)	12/21/1997 9:17:00 PM
From: Gary Wisdom	Read Replies (1) \| Respond to of 58324

Allen, I think the answer lies somewhere in between your opinion and Rosencranz's regarding losses on OEM sales. Consider that Iomega is working on a 30% average margin. Well, if they are making more than that (much more) on discs, and are making more than that on retail sales of both zips and jaz drives, then they are making much less than that on OEM zip sales. Whether it's negative or not is a question we will not be able to answer since Iomega won't tell us. However, if it isn't negative, I betcha it's pretty close to nothing. Regarding the CompUsa thing, I have no argument with your argument. However, with the retraction of the Map deals, this statement isn't at odds with reality. I still feel that the margin is very low for retailers on Iomega products in general. This is the benefit of being a market leader and having a heavily advertised product. It is called a loss leader by many. Cheers.