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

To: HardMoney who wrote (4023)	11/14/1998 12:32:00 AM
From: Rocky Reid	Read Replies (3) \| Respond to of 10072

>>What could possibly be IOM's rationale to release a CD-RW drive. It doesn't fit their business model.<< CD-R fits the "razor blade" model better than Zip. Once a razor blade wears out, you must get another. Once you finalize a $1 650MB CD-R disc, you cannot write anymore to it. You must buy another CD-R disc. This is why sales of blank CD-R discs are around 200,000,000 discs every 3 months. You can use a $10 Zip disc over and over and over again. Some people have no need for anymore than 1 Zip disc. This is why Zip discs have sold only just over 100,000,000 units in 4 years time. Not nearly as many Zip discs have sold compared to CD-R discs even though there are presently about 3 or 4 times as many Zip drives out there as compared to CD-R/W drives. Therefore, CD-R is the REAL razor blade model in the drive business. Zip is just a wannabe.

To: HardMoney who wrote (4023)	11/14/1998 11:58:00 AM
From: James Strauss	Respond to of 10072

Frank: Razor Blades have been very good for Gillette... : > I was trying to visualize the new production facility in Utah... 400,000 Sq ft... A Walmart or Kmart is about 70,000 Sq ft... So, picture about 4 1/2 Walmarts or Kmarts on top of each other or side by side... That's one hell of an increase in production capacity capability... There is a lot going on that we aren't aware of... But, we can follow the clues... Increased production capacity is a pretty good clue... : > Jim