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

To: BBG who wrote (3808)	11/10/1998 7:15:00 PM
From: Cogito	Read Replies (2) \| Respond to of 10072

J.D. - We'll see. By the way, for anyone who hasn't analyzed the situation carefully enough and who believes that Iomega's business plan resembles SyQuest's, let me point out a couple of things. SyQuest sold ALL of its drives at a loss. They also sold their disk cartridges at a loss. Their disks cost more to make than Iomega's Zip disks do. SyQuest was banking on eventually being able to acheive high enough volume levels of disk production and sales that they would be able to make a profit on them. It should be noted that SyQuest was never able to produce a profitable quarter after Zip took off. Iomega, on the other hand, has sold the vast majority of its drives and all of its disks at a profit. Iomega was able to deliver profits several quarters in a row until their costs got out of control, and their business model started to shift more toward OEM sales. They needed to get costs under control. They have done so, and continue to make progress in that direction. At present, SOME of Iomega's drives are sold at a small loss, and ALL or virtually all of their disks are sold at a good profit. As anyone can see, the business plans are different. - Allen