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

To: Ken Pomaranski who wrote (42845)	1/8/1998 6:55:00 PM
From: Frank Drumond	Respond to of 58324

Ken, you need to think in terms of market segments. I don't think that there is a homogenous storage solution anymore. I do think that Zip has the largest market segment available to them in storage. I also think that they are capacity limited at this point.

To: Ken Pomaranski who wrote (42845)	1/8/1998 7:39:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 58324

Ken, <What matters is that anybody can enter this business, and steal sales. (no loyalty, no barriers to entry.)> The barrier to entry in the low end removable media is an eleven million unit installed base. When I take 50 meg worth of JPEG's to my parents and inlaws, how would I exchange data with with them if I didn't have a ZIP. They all have ZIP's. Same thing with exchanging data/files with friends. I use a ZIP. They all have ZIP's. Don't you have a ZIP?? I haven't recommended (and I recommend many many PC's a year friends and co-workers) a PC without a ZIP in more than a year. The problem with substituting a 1-2 G devices is the price of the media (which is an order of magnitude more expensive than ZIP disks). Something definitely larger than 1.44M was needed as standard removable media. However, the routine need for anything beyond 1.44-200Meg is much less significant or universal. What about notebook compatability?? One of the best uses for ZIP is to move data between your notebook and desktop(s). This is my personal favorite use. If I am on my notebook and I download a 10M file from the internet how do I get it to my desktop. I copy it onto a ZIP. Very, very convenient. The cost of 1-2G media would be overkill for this use even if such internal devices existed. ZIP is unique because it has 11 million users and more are installed every day. Those who don't think that ZIP has already become a defacto standard in this market segment are kidding themselves. Iomega's head start is a huge barrier to potential competition. That's why Sony's drive is flat out DOA and that's why, more than any other single reason, LS120 flopped bigtime. The brand loyalty, name recognition, and installed base of ZIP can not be stolen by "anyone". Good luck to all, FF

To: Ken Pomaranski who wrote (42845)	1/8/1998 8:55:00 PM
From: Brent D. Beal	Read Replies (3) \| Respond to of 58324

. . .I estimated in October that ZIP has about a 3% penetration in the PC market. **** Where did you get these numbers? Maybe I'm wrong but I believe that about 85 million new computers will be sold this year based current projections? On the optimistic side, I think IOM has a shot at selling between 15-20 million Zips in the upcoming year. Based on the increases we've seen in OEM inclusion, I'm betting the average for the year will be over 40%. On the high end, therefore, the inclusion rate for new computers could run over 10%. If it looked to me like the inclusion rate was going to substantially under this number, then I'd consider selling my position, but everything I see indicates that 10% isn't a bad guesstimate--we'll all know more in a couple of weeks.

To: Ken Pomaranski who wrote (42845)	1/9/1998 12:19:00 AM
From: HardMoney	Respond to of 58324

>>>>>>>Not in the majority of the PCs that are selling today. I estimated in October that ZIP has about a 3% penetration in the PC market.(based on total ZIP sales / number of PC sales)<<<<<<< The key question to ask IMHO is not..."How many Pc's have a Zip Built in them this year?"....But rather...."how many PC owners have a Zip,internal or external?" When those who have externals decide to trade up their PC system they will ask for an internal Zip....and OEMs will have to supply them. Lets see out of 12,000,000 lets say 9,000,000 are external and lets say out of that 5,000,000 have yet to upgrade their system....that's a lot of PC's with Zip. But to continue to grow IOM must keep up its external sales high.The external teach the consumer that he/she will eventually need an OEM internal? What will IOM have to do to accomplish this? Well just as there are sub $1000 computers there will have to be IMHO, a sub $100 external Zip.....but guess what,...... there already is and the price...now off of MAP....will , IMHO drop to as low as $50. one day...a year out. It needs to first become the "cheap" peripheral before it can become the "cheep" standard in the "cheap" PC's of the future, which is a HUGE potential market.( People in the poorest sections of New York and other big cities and towns have a TV, but the don't have a computer ...eventually they will. The PC market is moving towards a different section of the market IOM must follow it. Zip is big and is used in 1 product ....a computer .........imagine clik!...it could be used in dozens of products. Just my thoughts, Frank

To: Ken Pomaranski who wrote (42845)	1/9/1998 12:29:00 AM
From: HardMoney	Respond to of 58324

>>>>>If you were buying a new PC today, would you buy a ZIP, which stores 100Mbytes, or consider a 1Gbyte device for nearly the same price? It doesn't matter that Syquest is going out of business. What matters is that anybody can enter this business, and steal sales. (no loyalty,no barriers to entry.)<<<<<<<<<<< There is loyalty Ken......Syquest is to Iomega what the MAC OS is or has been to Windows. Hoping for a return of the MAC OS...somehow!!! Syquest may still be a niche player if they stay in business, IOM's instaled base is a huge barrier to entry into this market, just as Windows installed base is. IOM took a niche and is making it into a market.....a brilliantly executed business plan so far. Frank

To: Ken Pomaranski who wrote (42845)	1/9/1998 12:30:00 AM
From: Cogito	Read Replies (1) \| Respond to of 58324

>>Everybody is buying sub $1000 PCs today, none of which have ZIPs, therefore, no loyalty to ZIP.<< Ken - The latest figures I have seen show that sub $1,000 PCs make up less than half of all PC sales. Yes, they are in the 40% range, but that's still not "everybody." And let's not forget that the sub $1,000 PC buyer will often buy upgrades, including $99 Zip drives. I believe that many of those buyers will be far more likely to spend a hundred bucks for a Zip drive than two hundred for a SparQ. They'll figure they don't need the higher capacity. Plus, as each month goes by, it's more and more likely that their friends have Zip drives. - Allen