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

To: Rocky Reid who wrote (8962)	4/12/1999 10:57:00 AM
From: sheila rothstein	Read Replies (2) \| Respond to of 10072

And who may I ask is buying those ORBISHES at a loss. Castlesheet is ??????selling these hoping to make up the loss on the cheap media that their bankrupt Korean supplier can't supply. Could you tell us who is going to make ORB's media at the price they are hoping for... answer NOBODY...I see another JAZ killer going under fast. IOM rules the storage market. SR

To: Rocky Reid who wrote (8962)	4/12/1999 12:24:00 PM
From: John Solder	Read Replies (1) \| Respond to of 10072

..And every single one of those OEM Zip drives sold at a loss to Dell. At the risk of mistakenly calling you a liar, please furnish us with your information that shows exactly what Dell is paying for each 250 Drive.

To: Rocky Reid who wrote (8962)	4/12/1999 3:17:00 PM
From: John Solder	Respond to of 10072

ROUND ROCK, TEXAS (April 12) BUSINESS WIRE -April 12, 1999--Dell Computer Corporation (Nasdaq:DELL), the world's leading direct computer systems company, today announced it is first to offer the new Iomega(R) Zip(R) 250 drive as an integrated option on its Dimension(R) and OptiPlex(R) desktop PCs and Dell Precision(tm) WorkStations. ...And every single one of those OEM Zip drives sold at a loss to Dell. Show us all where IOM stated that every single ZIP 250 drive sold OEM to Dell is sold at a loss. You stated a fact that "every single one of those OEM Zip drives sold at a loss to Dell." Prove your statement.

To: Rocky Reid who wrote (8962)	4/12/1999 5:37:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 10072

<<And every single one of those OEM Zip drives sold at a loss to Dell.>> nearly 25% of zip sales to Dell (and resold to the public) are sold separately from the box. thus, the overall margin mix to dell on drives has been flat to slightly positive. your statement implies that all drives sold to Dell are sold at a negative margin, which is incorrect. Those zip 250s which are included in each box (not sold separately) are sold at a positive margin, and the zip 250s sold separately from the box receive an even higher margin yet. the relative drive cost of the zip 100 to the zip 250 isn't significant; yet the retail cost more than compensates for any increased production costs. relative to negative margins; the margins are a function of the overall cost of production of the zip. Glore has stated that it was his intention to lower the cost of production on zip (recall that the first through third quarters of 98 the zip was using two times more "chips" to function than was being used in the last quarter of the year - thus, we've only witnessed one full quarter of zip production with the lower cost zip models - less chips also equals less labor for installation, etc.) to improve the margins. last quarter showed that IOM had the ability to lower margins further. Glore was expecting further improvements in zip drive margins, as was Flaig. we'll see if they succeed.