To: AreWeThereYet who wrote (54006 ) 5/4/1998 5:46:00 AM From: Dale Stempson Read Replies (1) | Respond to of 58324
Re: LS-120 SALES Andy, You are not alone on this thread holding the belief that the LS-120 is a weak product and not selling well. It appears that most everyone here has discounted the drive as any real threat to the Zip. With the increased LS-120 advertising and publicity we have been seeing lately, I decided to find out for myself a little more about the product and how well it's doing. I was surprised at what I discovered. Here's some information that you might find interesting: 1) Units shipped: Imation has shipped about 2 million LS-120 drives, with 90 percent going through the OEM channel. 2) Along with Imation, SuperDisk technology also was co-developed by Compaq Computer Corp., O.R. Technology, and Matsushita-Kotobuki Electronics Industries, Ltd. (MKE). Other companies that offer products based on the technology or that have announced plans to do so include NEC, Gateway 2000, Acer America, Siemens Nixdorf AG, Exabyte, Vobis, Mitsubishi Electric Corp., Hi-Val, Hitachi-Maxwell, Ltd., Samsung, Fujitsu ICL, Twinhead Corporation and Everex. 3) Boxmakers: LS-120s are currently offered as options by Compaq, IBM, Hewlett Packard, Gateway 2000, NEC, Acer America, Hitachi, and a few others. 4) LS-120 availability is extensive through all major computer retail stores, mail order outlets, computer resellers, office supply, computer supply, computer wholesalers and VARs. 5) A new advertising and publicity campaign began in March with TV, radio and print ads. 6) Pricing examples: CompUSA is currently offering the Hi-Val LS-120 for $69.99 ($99 less $30 rebate). LS-120s have been previously offered for as low as $49.99 after rebate. 7) For Mac: Winstation now offers LS-120 technology in their SLS-120 with a SCSI I and II interface that works with Apple and IBM compatibles, and comes in external and internal bootable configurations. 8) Customer example: (February 17, 1998) Ernst & Young has adopted SuperDisk technology to replace the Iomega Zip products currently used by its consultants. Ernst & Young will specify SuperDisk drives as its internal drive component of choice in both desktop and notebook computers for use by its globally mobile staff of consultants. Additionally, the company has already placed an initial order for more than 2,000 Imation SuperDisk Parallel Port Drives for its U.S.-based staff. I guess what I've gathered from my brief research is a belief that the LS-120 is having an increasingly significant impact on the superfloppy market. If someone had previously asked me what factor the Zip outsells the LS-120 by, I certainly wouldn't have answered as little as 6 or 7 to 1. Considering what a dog product I believe the LS-120 to be, I have to now wonder about how well HiFD might actually do when it finally begins shipping. With its low competitive cost and specs, coupled with Sony's marketing and financial resources, there's the potential for some additional Zip pain and suffering. By the end of this year, it appears we'll have at least 3 major superfloppy competitors out there pitching products to the boxmakers. Pricing is likely to become cutthroat and resulting gross margins will suffer across the board. There may not be any winners for awhile. Regards - Dale