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Motorola Xoom $800 Price May Spell Failure

This is a discussion on Motorola Xoom $800 Price May Spell Failure within the Motorola Xoom News forums, part of the Motorola Xoom News & Site News category; If the Android 3.0 Honeycomb tablet debuts $300 above the iPad base price, it may not be able to compete with Apple or the Samsung ...

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  1. #1
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    Motorola Xoom $800 Price May Spell Failure

    If the Android 3.0 Honeycomb tablet debuts $300 above the iPad base price, it may not be able to compete with Apple or the Samsung Galaxy tab.

    Over the weekend, tech blog Engadget caught sight of a Best Buy circular ad that contained pricing and availability details for the Motorola Xoom. According to Best Buy, the Android 3.0 Honeycomb tablet will hit the streets on Feb. 24 with a price tag of $799.
    The timing of the launch by Best Buy falls in line with what Motorola's CEO has said about the Xoom's availability. The $799 price point also falls in line with pricing for the Xoom seen in Verizon Wireless's internal system. That's $300 more than the base price of the iPad. Can the Xoom survive at that price point?

    Like it or not, Apple set the pricing standard for tablet computers when it launched the iPad a year ago. The least expensive iPad can be purchased for $499 (though higher-end models stretch up to $829). Samsung and its partners in the U.S. priced the Galaxy Tab at $400 to $650, depending on which carrier and whether or not it was purchased with a contract. While the Tab's specs don't match the Xoom's, Samsung kept pricing fairly close to that of the iPad. (Samsung says the Tab has sold well, though exact sales figures aren't known.) U.S. carriers have, however, begun discounting the Tab heavily. T-Mobile, for example, is selling it for $250 with a contract.
    The Best Buy advertisement does not specify if the $799 price point is subsidized by Verizon Wireless or not. That could spell the difference Motorola needs to move this product. Verizon Wireless would need to be willing to cover at least $200 or $300 -- bringing the sale price to consumers down to $500 or $600 -- to make the Xoom a more palatable purchase. Verizon routinely subsidizes smartphones and netbooks by that much. If the $799 price is full retail cost and Verizon doesn't offer subsidization, the Xoom may die on the shelf. If the $799 price is the subsidized price, then Motorola and Verizon may have a bit of a problem.
    The Motorola is an appealing product, no doubt. It has a 10.1-inch display, which is larger than the iPad's by a smidge. It has a widescreen touch display with 1200 x 800 pixels, and is powered by dual-core 1GHz processors. It will ship with a 3G radio for wireless broadband, but can be upgraded to 4G Long Term Evolution through a hardware modem swap later this year. (Motorola said this requires a technician.)
    Other hardware specs include support for 1080p HD video playback and Adobe's Flash Player. For gaming, it has a gyroscope, accelerometer, e-compass and a barometer. The main camera shoots at 5 megapixels and can capture 720p HD video. The Xoom has a user-facing 2 megapixel camera for video chats.


    Then there's the Android 3.0 Honeycomb operating system. Based on what Google has revealed about this new, tablet-optimized version of Android, it is leaps and bounds better than Android 2.2 (which is what the Galaxy Tab runs). The new user interface looks much improved compared to older versions of Android. Motorola has high expectations for its Xoom tablet. The company is preparing to flood the market with as many as 1 million units in the first quarter of the year.


    There are a number of factors that need to be weighed, however. Research In Motion is also preparing to debut its PlayBook before the end of the quarter. RIM, too, is looking to push about one million of its tablets before the quarter is out. Pricing and availability haven't been confirmed for the PlayBook yet. Then there's the iPad 2. Apple hasn't announced (or said when it will announce) the iPad 2, but it's coming soon. It will likely hit the market by the end of March or early April -- a year or so after its initial launch.
    If Apple is smart, it will announce the iPad 2 and its pricing/availability details before the Xoom and PlayBook go on sale. With three heavy-weight tablets launching at the same time, pricing will play a key role in the success or failure of these devices. If the pricing for the devices is the same, will the PlayBook's and Xoom's new operating systems provide enough to draw away would-be iPad buyers?



    source InformationWeek

    Thanks to Quicksilver7714 for the link

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  3. #2
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    It says it is $300 more than the base price of the iPad. You can't compare the 2. One is WiFi one is WiFi + 3G. You also can't compare prices of something that released last year to something that hasn't even released yet.

  4. #3
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    The ipad 2 should hold the same price as the original. Just look at the prices of the ipods and itouch.

    Sent from my DROIDX using Tapatalk

  5. #4
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    Yes, but you still couldn't compare the Xoom to the iPad 2's price yet. We don't know whether the price of the iPad and iPad 2 will be the same. We also don't know how the internals of the Xoom and iPad 2 will compare. And still it's a comparison of a WiFi model iPad to a WiFi + 3G + upgradeable 4G Xoom.

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    Either way you look at it, the xoom will be overpriced when compared to its competition. Apple products almost always keep the same price point when new products come out to replace an older one.

  7. #6
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    Thank you Droid-Xer.
    At least someone sees it the way I do.

    Sent from my DROIDX using Tapatalk

  8. #7
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    I for one will not be buying it with an $800 price tag -

  9. #8
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    If it actually launches at $800, I really hope that it fails big time. I want the industry to know that it can't try to rape us with ridiculous pricing. And yes, it is a failure that it is $300 more than Apple's base priced Ipad. Why is that relevant? Well, Apple gives customers more choices in models/pricing. While, Motorola is currently offering One Choice..the most expensive in the industry. smh. I hope this sets Motorola back.

  10. #9
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    I think its unfair to compare the Xoom to the 16GB wifi ipad. It should be compared to the 32GB 3g ipad because the Xoom has 32GB of storage and a 3g radio. This comparison would still show that the Zoom is over priced by $100 when compared to the industry standard ipad. And even when the ipad 2 comes out it should have similar if not better specifications than the Xoom and the same price as the current ipad, as apple is notorious for releasing the newest model at the same price and discounting the older version.

    Sent from my Droid using Tapatalk

  11. #10
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    Quote Originally Posted by Quicksilver7714 View Post
    I think its unfair to compare the Xoom to the 16GB wifi ipad. It should be compared to the 32GB 3g ipad because the Xoom has 32GB of storage and a 3g radio. This comparison would still show that the Zoom is over priced by $100 over the ipad. And even when the ipad 2 comes out it should have similar if not better specifications than the Xoom.

    Sent from my Droid using Tapatalk
    It is sort of unfair, but the Ipad has various models, and pricing, so you can choose one that's more affordable. THe Xoom does not, and has most expensive pricing in the industry.


 
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