To: Ken Pomaranski who wrote (5750 ) 1/13/1999 8:14:00 AM From: Bob B. Respond to of 10072
Ken, I share some of your concerns about Clik! I bought a lot of IOM in October because it looked like a good deal given the Y2K situation. I did not consider Clik! in estimating 1999 targets because I could see no immediate million-unit sellers for this product. In theory, small, lightweight removable storage should be a winner, but I think much will depend on Iomega's ability to bring the cost down. I agree that digital cameras will not achieve mass-market status, with or without Clik! built in, unless prices come down considerably. The large-volume sellers could be MP3 players, electronic books, miniature dictation machines, and smartphones, but the products that use Clik's capabilities don't exist yet and, if they are developed, prices will drive sales. Clik! does seem to be cost-effective versus flash cards, particularly when a large amount of memory or frequent replacement is required. I suspect IOM has gambled the $70 million they spent on Clik! R&D partially on an "if we build it, they will come" theory. It's somewhat risky. While the products that may use Clik are being developed, someone might come up with a removable-storage system that has more capacity and is even smaller and lighter. All that said, I think it will take a year before we begin to see how the OEM crowd makes use of Clik! I think we may see a whole raft of new products, but I'm hard pressed to say what they might be. The trends, though, are there. People want it lighter, smaller, and with more features. Desktops and laptops have become memory hogs so people can have bells and whistles, and there's every reason to believe that the same will happen with small handheld devices.