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

To: Cameron Dorey who wrote (7865)	3/2/1999 6:40:00 PM
From: Rocky Reid	Respond to of 10072

Now that Imation's USB Superdisk is clearly Outselling USB Zip at Mac Outlets like MacMall (#5 Best-selling product-Imation USB Superdisk, Zip didn't even make list) and Castlewood Orb is now out on the market and taking sales directly away from Jaz2, how can Iomega stop the bleeding? They can't. Iomega may be able to lower prices to try and stem the tide, but this move will only lower Iomega's margins as well-- something Iomega has had a lot of trouble with for the past year. And something that wil only flame the wrath of Iomega investors as loss after quarterly loss piles up. I'm afraid that Iomega's days of profitabilty may have been lost for a long long time. Imation is no Syquest. It is a well run diversified company with a fresh new $500 Million+ war chest of cash-- due to the sale of its medical imaging business to Kodak. Imation can use this $500 Million to push Superdisk for years. Likewise, Castlewood is no Syquest. Syquest was deeply in debt with no allies. Castlewood is a new company running a low overhead US operation and so is able to run on low margins. Castlewood has also been clever enough to bring partners on board like Trans Cap, Aiwa, Sanyo, and Tru-Tech that have deep pockets and a direct interest in seeing Orb succeed. Syed is evidently not afraid to "share the wealth," and so is able to build an industry coalition behind his vision. Witness the ProView Computer announcements of making PC's with an Orb drive and NO fixed hard drive. MR-tech Orb is actually replacing the hard drive. Castlewood is poised for a stratospheric IPO this Summer. IOM? We'll be seeing $3 soon.