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

To: Rocky Reid who wrote (51878)	4/3/1998 1:43:00 PM
From: Bill Lin	Read Replies (2) \| Respond to of 58324

Rock, what do you think if IOM trys to buy Castlewood? what if they can the 2 gig drive and try to make a 5.6gig drive? IMO the $15/gig price point is so far below existing pricing structures that it WILL severely hurt the zip and jaz markets. If IOM does not kill the orb, then can market it as the jaz MR. it is no wonder that with a blank sheet that Orb can make this product faster and better than IOM. The question is why Syquest couldn't. IOM has the legacy problem with jaz and jaz2. with the 2 disk design and the TFI heads, their cost structure is inherently higher than the 1 disk MR head based orb. (each disk is cheaper, but there are 2 of them. and tfi heads are cheaper, but there are 4 of them vs 2 or 8 vs 4.) Castlewood does not have a 50% margin on the $29 disks. I think their margin is only about 30%. so they will have to sell about 1 million units (not hard) to break even and maintain service and support. Of course if they do the jaz thing, they will be profitable before hand. I really think that if the Orb is really that good, that Castlewood would do very well by using IOM's distribution system by being bought out by IOM. BL