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


To: Reseller who wrote (2742)10/28/1998 3:50:00 AM
From: Rocky Reid  Read Replies (2) | Respond to of 10072
 
>>Re: is there any possibility of an IOM Cd-r/w drive will be demoed a CD RW<<

I really don't know why Iomaniacs seem to be celebrating this news. Nomai saw the writing on the wall and converted production over to CD-R/RW to merely try and stay in business. The CD-RW market is very low margin. And an Iomega CD/RW drive will help kill off sales of high margin Jaz2.

Nomai was losing money making CD-RW, but they were doing it to try and stay in business because the rest of their products were dead. Iomega may convert production to CD-RW as well. But it will only help to hasten Iomega's evolution into a low margin has-been. CD and DVD are attracting large chucks of consumers who once would have bought Jaz2.

The pre-formatted CD-RW discs sound good I guess, but one has to remember that the CD-R/RW market is extremely price-conscious and low margin. People shop around for $1 (or even less) CD-R's and $8 CD-RW discs. If Iomega's are more than this, they can forget about any sales. And in the meantime, scoring a profit in this easily-substituted business is also going to be murder.

Besides, Nomai's technology is at least a generation behind. Hitachi and Yamaha are introducing 8x CD Burners in January. And Cirrus logic's new chip that enables 10x write 40x read will be incorporated. Nomai/Iomega? only 4x.