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Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: D.J.Smyth who wrote (1828)	9/29/1998 2:54:00 PM
From: Rocky Reid	Read Replies (2) \| Respond to of 10072

RE: Nomai You are mistaken about many things. According to www.nomai.com, the "Infinity 2000" is not a DVD drive, but a removable magnetic hard disc just like Jaz2. Expect this product to be dropped, as it would conflict with Iomega's Jaz2. According to Nomai's financials for 1997, they were a tiny company in serious trouble with shrinking market share. The 1997 financial report laments the rise of CD-R/RW as a reason why margins fell so dramatically. Nomai was forced to enter the CD-R/RW field, but is only a tiny player with no new technology to offer the market. The only reason Iomega bought it was to try and protect their Zip disc monopoly. If Iomega wants to enter the CD-R/RW market, they do not need any help from Nomai. The barrier for entry in this market is non-existent. The reason why Iomega is not willing to enter this market is because the margins are much lower than their proprietary systems, and sales of CD-R/RW products eat away at Zip and Jaz sales. This is why Iomega is caught in a meat grinder situation. If they try and fight the new Standard in Removable Drives (CD-R/RW) with lower prices, they lower margins. If they join the new Standard and offer CD-R/RW, they eat away at their own sales of higher margin Zip/Jaz. The result? Lower margins. Iomega is in a world of hurt, and this stock price of just below $4 is too much for a company in this much trouble. IOM is a $2 stock waiting to happen.