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

To: David S. who wrote (7354)	2/16/1999 4:31:00 PM
From: Rocky Reid	Read Replies (3) \| Respond to of 10072

IOM $6 1/4 IOM is merely following its rightful path-- DOWN. There is no justification for anything otherwise. A possible loss has been warned for this quarter, and no firm guidance was given for Q2 99. I warned previously that Iomega management would be very evasive about giving firm earnings numbers going forward, and I was right once again. Please tell me, what fundamental reason is there to justify anything else but an IOM decline? The Flop! drive? Please... Legions of 2+ Megapixel cameras are being rolled out as we speak, AND NONE OF THEM HAVE A FLOP! DRIVE. Iomega has had 3 years to try and include Flop! into ANYTHING!-- And all they have to show for it is a tiny Korean startup called Varo Vision (who?) who sells a niche-within-a-niche unproven product. Iomega is simply losing the war in its OEM model. Iomega simply has no pricing power, as OEM Superdisc success is illustrating. Niche users may prefer Zip, but the average computer user has no real need for a Zip drive, nor do they care which removable they buy (hey- it comes free with the computer, right?). Besides, today's hard drives are HUGE- way more space than the typical user will use in the lifetime of a typical computer. Intra-office networks have replaced much of the business use of Zip as well. And smart businesses ship out $1 CD-R's for delivery instead of $10 Zip discs. Iomega's expensive marketing attempt to broaden the Zip market last year failed miserably. Iomaniacs blame KE or other top officials for Zip's declines, but in reality, Zip's fall has been unavoidable. KE actually did the correct thing to try and stem the tide, but it failed. In a nutshell- Iomega's fall was unavoidable. Blaming KE's strategy serves no purpose.