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

To: Reseller who wrote (8994)	4/13/1999 1:56:00 AM
From: Reseller	Read Replies (1) \| Respond to of 10072

FYI, A little about Dell. DELL TAKES SIGNIFICANT LEAD IN U.S. CORPORATE MARKETPLACE -Just in dell.com (Ziff-Davis Study Shows Dell Also No. 1 In All U.S. Business Segments) ROUND ROCK, Texas, April 12, 1999 -- Dell Computer Corporation (Nasdaq: DELL), the world's leading direct computer systems company, took a wide lead as the No. 1 computer systems vendor to U.S. businesses with more than 500 employees during the first quarter this year, according to a recent report from ZD Market Intelligence. In addition, Dell now also is the market share leader in total PC shipments within the overall U.S. workplace segment, according to the ZD Market Intelligence Projected Market Monitor survey. The ZD Market Intelligence study was based on preliminary results from several thousand interviews with businesses and governmental and educational institutions about their hardware and software purchases made during the prior 90 days. "Increasingly, U.S. business customers are recognizing the value of Dell's direct model, strong product lineup and growing array of service and support capabilities," said Michael Dell, chairman and CEO of Dell. "We are committed to building on the momentum we have established in this marketplace by continuing to enhance our enterprise solutions and providing a superior experience across our entire customer base." Dell claimed 30.9 percent of the market in the U.S. large commercial segment in the first quarter of the 1999 calendar year, according to the ZD Market Intelligence study. The study said Dell's nearest competitor recorded a decline to 21.5 percent of the market during the period. The study also showed that Dell had 21.2 percent market share in the overall U.S. workplace. Dell's nearest competitor saw its market share decline to 18 percent in the segment, according to the ZD survey. Dell first assumed the large commercial market share leadership position in the third quarter of 1998 and has now regained and widened it, according to the survey. "Dell has increased market share consecutively in every quarter since the fourth quarter of 1997 and the preliminary results from the first quarter of 1999 indicate that Dell is now opening up a sizable lead . . ."the study said. The full study is available online at zdinfobeads.com

To: Reseller who wrote (8994)	4/13/1999 12:56:00 PM
From: HRP	Read Replies (1) \| Respond to of 10072

<< Dell ( the Premier computer maker ) announces the first to include Zip 250, that the Zip inclusion rate is over 40% of their most popular model ( the Dimension desktop series ) and somehow this is bad business, what a joke. >> Reseller, You'll recall about five (?) quarters ago when Iomega first preannounced. They blamed an unexpected sudden shift in the percentage of Zip drives that were sold to OEM's. This showed the effect of the price difference between after market and OEM sales upon per share earnings. It took Iomega 4 (?) quarters to return to profitability. There exists a price payable by Dell to Iomega such that the present value of all future Iomega earnings at some agreeable interest rate is the same whether they make then 250 MB Zip deal with Dell or not! It is impossible to know what this "indifference price" is since we can't get real life to emulate the movie Groundhog Day (where a day was repeated over and over again). We also don't know what price Dell and Iomega agreed to. If I were working for Iomega and had responsibility for determining an agreeable price, I would create a mathematical model for the "indifference price" and evaluate it under a range of assumptions using the 100 MB Zip sales data that Iomega has collected. I would then assign a probability to each of the assumptions and then derive my best estimate of the "indifference price." Management could then take the "indifference price" into consideration when negotiating with Dell. What actually did happen in the negotiations between Iomega and Dell? Was the agreed price above or below the "indifference price"? (That is, was the deal a good deal or bad deal for Iomega?) I don't know. Would you think it a joke to consider the possibility that the agreed price is less than the "indifference price?" After all, if Iomega were so infallible would they have made the decisions that led to the first preannouncement? Something to think about or something to dismiss? Respectfully, hrp