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

To: David Colvin who wrote (5175)	12/16/1998 8:34:00 AM
From: David Colvin	Respond to of 10072

More on tie ratios.... Iomega just announced that they have shipped 20 million zip drives and 125 million zip disks. Hence an overall tie ratio of 6.25 zip disks to zip drives shipped by Iomega. The post below further supports the argument that the calculation of a true overall tie ratio to all drives sold will become nearly impossible moving forward. As I recall, the two main zip drive licensees are MCI and NEC. And it may bear repeating here that Iomega doesn't license the production of zip disks to anyone!!! There are companies producing disks under contract (such as Sentinel in Belgium) to Iomega but not under license. Iomega then sells the disks outright or to co-branders (Such as Maxell and Fuji). It's simply immoral...Iomega being greedy and keeping all those patented disk profits to themselves g ******************************************************************* From the AOL Motley Fool Iomega board: You cannot exclude the licensee contribution to Zip drive sales which will begin to take on real significance in 1999. These drive sales are not included in the Iomega milestone announcements, but Iomega sells the disks for all the drives. This is why Iomega has moved away from the concept of a tie ratio.** It will no longer be a simple matter to take the Iomega announcements and divide to determine an overall tie ratio. Because of the effect of the licensees, I would expect that we will see 200 million disks sold well before a 32 million drive announcement. NEC is ramping to sell 5.5 million drives alone next year, and Matsushita is selling under the Panasonic name also. What this will mean is ever accelerating disk sales for Iomega. And that should translate into higher and higher margins and greater profits as disks are sold by Iomega with the low margin drives manufactured by licensees. Dave