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

To: Linda Pearson who wrote (48020)	2/16/1998 11:45:00 PM
From: Cogito	Respond to of 58324

>>With any rebates and potential price reduction on Iomega's part, would it be worth the trouble for Nomai to get a piece of the action? Why would they even try for a piece of the action if this wasn't considered a LUCRATIVE venture? In other words, maybe ZipDrives/Disks could be around for a while.<< Linda - This is an interesting point. Since Zip sales are falling like cliff divers in Acapulco, at least according to our resident self-proclaimed Aristotle, why does it matter whether or not Nomai gets into the game? If nobody's buying Zip disks anyway, Iomega is already doomed, and Nomai is just wasting their own time and money. But of course, the point of bear arguments is simply to take the side of the argument that's against Iomega. It doesn't matter if two of those arguments are contradictory. BTW, my understanding is that Nomai's production capacity is perhaps 10% of Iomega's. Furthermore, they cannot add to that capacity due to constraints on the sale of Zip-making machinery. - Allen

To: Linda Pearson who wrote (48020)	2/17/1998 4:09:00 AM
From: Lurker	Respond to of 58324

<<Does anyone have any statistics as to what the production capacity is for Nomai's knock-off disks?>> 10 million per year if they run their machines continuously. <<If there are any estimates, what percentage is this of Iomega's production capacity?>> Iomega is expecting sales to increase from 100 million to 200 million this year. <<With any rebates and potential price reduction on Iomega's part, would it be worth the trouble for Nomai to get a piece of the action?>> It depends on what is a lot of money to them. If they make $1/disk, they can make up to $10 million/year. That is a lot of profit for a small company. (See my post 48028)

To: Linda Pearson who wrote (48020)	2/17/1998 12:49:00 PM
From: Mel Boreham	Respond to of 58324

Hi Linda... good question. Remember a GOOD PARASITE does NOT KILL its HOST! After all they are in the business to sell "knock off" disks that are at least broadly compatible with the current standard for removable storage, Yes that is the Zip Disk Rocko and Mac Fear Some!! So, if as others have projected that Nomyidea disk production will only be around 10 million, then this Host/Parasite relationship will probably not hurt the IOM host that much, in fact it just might add enough contention to the market place that it will act as a call to attention of the entire removable storage market, which could actually benefit IOM. I don't see that Nomyidea has any illusions of beginning to directly compete with the Zip drive market by selling their own mechanisms to use their disks... the patent attorneys would have a field day on that one. So, worst case, the fact that IOM will have some competition in the disk market, may not, at least for now have much great effect of the future penetration of the market by IOM, which according to all reports, continues to demonstrate excellent growth figures quarter to quarter and year to year. IOMEGA can also state that Warranties would be voided for anyone using disks other than those sanctioned by IOM. This would keep many folks away from even considering buying the knock off disks. Just one Opinion... Take care, Mel