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

To: rocky haag who wrote (53696)	4/26/1998 12:00:00 PM
From: Jock Hutchinson	Read Replies (1) \| Respond to of 58324

If you scratch the surface of your so-called positive news on IOM post, you will see that it contains a lot of information that is very negatvie about IOM. If Iomega and the rest of this industry follow a typical Disk Drive war pattern, even the most bearish on this board may be too conservative in their estimates of how cheap the Zips will be selling for. IDG says PC unit shipments will be 93 million this year. I agree that probably 70-80 will be sold in the US. Iomega is not very thoroughly penetrating this market ...yet. I think that production will have to skyrocket for this to happen. I also don't believe Iomega has the cash or credit to do the expansion this year. What this post says is that there is a potential market of 90 million new PCs for Zip OEMs. IOM is installing about 4 million this year, which means a penetration rate of about 5%. Obviously this means that there is a huge potential market for IOM. But it also means that the market is also ripe for enormous competition. As the article notes, the price of disks can plummet in the disk drive market. As the article further notes, IOM is limited by its finances as to the response that it can take. That is an extremely precarious position.