Iomega Corp, which has seen its fortunes slide as of late, is attempting to boost its sales by reducing prices on its Jaz drives and disks. The company says it is cutting prices by as much as $150 on its Jaz 2Gb drives, and as much as $50 on 2Gb disks. Iomega – which has recently reported a first-quarter loss, seen its chief executive officer and chief financial officer jump ship, and is facing a class action lawsuit – has previously said it would be implementing aggressive pricing plans to boost its flagging aftermarket sales, the main reason, the company said, for the poor first quarter. Aftermarket sales, as opposed to shipments into the OEM channel, bring higher margins for the company in addition to helping build a solid consumer base. Both Jaz 2Gb external and internal drives are now available for $499, down from $649 for the external model and $549 for the internal model. The Jaz 2Gb disks are now priced at $125, down from $169, or $99 each in a 3-pack. Jaz 1Gb disks, which are compatible with the 2Gb drives, have also been reduced to $99, from $125, or $89 each in a 3-pack. The price cuts also come hot on the heels of a California court’s ruling that rival Nomai SA can continue marketing disks compatible with Iomega’s Zip drive product. Last week the court denied a preliminary injunction that would have prevented Nomai from selling the XHD disks, which Iomega contends are both incompatible with the Zip drive and in violation of its patents and copyrights (CI No 3,421). The legal battle between the two has been raging since last year.
