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Motorola Xoom  (Source: Motorola)
Analyst cuts projections for Motorola thanks to poor sales

Motorola has made quite the comeback in the last couple of years after slipping significantly with handsets and smartphones that consumers just didn't buy. The comeback made by Motorola is thanks in large part to the Android operating system.

The latest launches from Motorola including the Xoom Android tablet and Atrix Android smartphone have turned out to not be as popular as Motorola hoped according to some reports. The revelation that the two products just aren’t doing well on the market comes from analyst James Faucette from Pacific Crest. Faucette cites a channel check he performed that shows the sell-through for both the Atrix and the Xoom "have been disappointing."

Faucette reports that the Atrix in particular is being hurt by the low $49 price tag Apple has on the iPhone 3GS and the same $49 price for the HTC Inspire. Those low prices are conspiring to limit the demand for the Atrix. Because of the poor demand and sales of the Motorola devices, Faucette is cutting the 2011 revenue forecast for Motorola to $12.2 billion from its previous estimate of $13.7 billion.

Faucette also dropped his outlook for Motorola in 2012 as well cutting the projection to $13.6 billion from $15.3 billion before. He also notes that further reductions could be made to his projections if Motorola is unable to adjust and refresh its product portfolio. Undoubtedly, the lower price of the iPad 2 is hurting sales of the Xoom tablet as many tablet shoppers aren't willing to give Android a shot.

Faucette does note that Wall Street is confident in Motorola management and that the company has good cash reserves. However, he notes that if Motorola isn’t able to launch products that stand out in a crowded market shareholders may start calling for new management.



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Where is the marketing?
By StraightCashHomey on 4/6/2011 11:33:36 AM , Rating: 1
The average person has no idea that there are tablets that are not iPads. I've yet to see a single commercial about an Android tablet. I see plenty of Apple's piano-playing, finger-snapping commercials about the iPhone and the iPad, but that's about it.




RE: Where is the marketing?
By Chaser on 4/6/2011 11:42:57 AM , Rating: 2
I see a Xoom commercial pretty reguarly. Almost too often.

But a phone is a needed item thats more spread out among Apple, Google and teh others.

Tablets are still novelty items that Android techies are being cautious about. So most tablets out threre are being bought be Sheeple showoffs for airline flights.


RE: Where is the marketing?
By mcnabney on 4/6/2011 1:37:10 PM , Rating: 5
It is pretty much impossible for Motorola to pay for enough adds to even approach the amount of free ad time that Apple gets. Seriously, there were at least three rounds of pre-announcement drama to circulate for the iPad2 before they even announced the product.


RE: Where is the marketing?
By F41TH00 on 4/6/2011 12:00:58 PM , Rating: 3
My take on this Xoom is the mistake of Motorola marketing planning. The design is good, but not great. Xoom released "unfinished" tablet just to beat iPad 2. it's a wrong move. Motorola is letting the customer, early adopter, to take on unfinished product, it's a very wrong move. People who were the early adopter of Xoom will report what's not working and is it worth your money or not.

iPad already on its 2nd generation, by putting Xoom almost the same high price like iPad 2, it's a wrong move. Xoom should be at least $100-$150 cheaper.


RE: Where is the marketing?
By Aloonatic on 4/6/2011 12:15:00 PM , Rating: 2
Maybe you are not someone whom their marketing department is targeting, so they are not bothering to "waste" money advertising during the shows that you (and others in your demographic) typically watch?

Advertising is somewhere where Apple seriously invest, whilst most other companies don't. Even MS don't advertise their consumer products as much. Partly because they don't need to as they have been so dominant in many areas, but it seems that they just don't really seem to know what to do. I have seen their general Windows Mobile ad a few times (the one with the wife in the black nightie) but not that often, and only saw an ad the other day which actually showed WP7 working, mentioning live and MS office etc.

Sometimes it seems that no one really has the will to go toe to toe with Apple in the mobile phone and tablet octagon, and put their advertising/marketing budget on the line.


RE: Where is the marketing?
By StraightCashHomey on 4/6/2011 12:48:54 PM , Rating: 2
I watch plenty of the common networks, and I always used to see the "Drooooooiiiiiiiid" commercials when that came out. I don't see any Xoom commercials.

I always figured you get your money's worth out of advertising, so I'm surprised I haven't seen many more commercials for Xoom, WP7, etc.


RE: Where is the marketing?
By KentState on 4/6/2011 1:42:41 PM , Rating: 2
I have seen many times more commercials for the Xoom lately than the iPad2 on tv. During the NCAA basketball tournament, they showed one each 30 minutes and a lot during prime time programming. The Galaxy has also been on tv a great deal.

http://www.youtube.com/watch?v=TxZ6NQnIPkU


RE: Where is the marketing?
By KoolAidMan1 on 4/6/2011 1:57:27 PM , Rating: 2
Are you kidding, they market the hell out of the Xoom on TV. They even have celebrities and athletes shilling for them on Facebook and Twitter.

The Xoom just isn't that good a product side by side with an iPad. It isn't rocket science why even an informed consumer would pass the Xoom over. It just isn't feature competitive in any way.


RE: Where is the marketing?
By Lanister on 4/6/2011 2:14:29 PM , Rating: 2
What features are you comparing? My guess is they are all going to be personal preferences or opinions. After playing with the Ipad2 and Xoom for about 4 hours at bestbuy the only thing the Ipad had over the Xoom were the apps, but please let me know if I overlooked anything as I still have 11 days to go and return my Xoom and get an Ipad.


RE: Where is the marketing?
By rburnham on 4/6/2011 2:44:49 PM , Rating: 2
No, that's accurate. The Xoom's only fault right now is a limited number of tablet-specific apps. Time will rectify that. Otherwise, the Xoom outclasses the iPad and iPad2 on just about every front.


RE: Where is the marketing?
By robinthakur on 4/7/2011 9:08:04 AM , Rating: 2
Well the screen is meant to be better on the iPad (disregarding resolution, contrast is way better, the iPad is more reliable and does not have choppy, juddering animations. Everybody knows how to use an iPhone/iPod so it doesn't seem as complex as using a non Apple tablet. I also think that the kind of person that would buy a tablet has gotten quite used to disregarding the sort of adverts saying "iPad killer"/"Better than iPad" commonly marketed with Galaxy Tabs and those other cheap chinese knockoffs of the iPad running a phone OS (1.6-2.2) and is probably quite wary about them. Also, its usually stated that this is the first proper Android tablet and reviews have pretty much all stated that it's unfinished in its current state and has some build quality issues right now. That and it's actually priced MORE than an iPad, which is insane.


RE: Where is the marketing?
By theapparition on 4/6/2011 4:55:11 PM , Rating: 2
We see why your username is "KoolAidMan1".

The Xoom is far better in almost any metric than the iPad2.

iPad2 wins in number of apps, and by having a lower priced (albeit lower featured) offering. iPad2 is also better in some physical areas, such as weight. But for almost any other metric, the Xoom is hands down better.

I've said it before though, the better product doesn't always sell better.


RE: Where is the marketing?
By rburnham on 4/6/2011 2:42:42 PM , Rating: 2
I have seen commercials for the Xoom, but when I went to buy one shortly after they came out, there were none on display at Best Buy. I had to ask the guy in the cell phone area to try one, and he had the demo model hidden behind the desk. A few feet away, an iPad was sitting out in an end cap for people to try out. They need to put these new tablets out for people to use.


The reason I don't own an Atrix in one word:
By SpartanJet on 4/6/2011 11:39:06 AM , Rating: 2
Pentile. If they want my business then here is some advise: don't put a sub standard screen on a high end phone.




RE: The reason I don't own an Atrix in one word:
By Kurz on 4/6/2011 12:51:24 PM , Rating: 2
Just a screen... the rest of the phone is really solid.
The one complaint I have is the Boot loader.


RE: The reason I don't own an Atrix in one word:
By SkullOne on 4/6/2011 1:02:16 PM , Rating: 2
How about the docking station that costs more then a netbook and weighs more then a Macbook Air? One of the features, a fantastic one at that, they brag about is priced into oblivion to make it nothing but an overpriced bragging right.

Motorola did the same with the Xoom. Overpriced and unfinished. Great ideas but piss poor implementation. Motorola is quickly falling back into their old habits after the Droid and Droid X pulled them out of the dumpster.


By name99 on 4/6/2011 3:17:50 PM , Rating: 2
quote:
One of the features, a fantastic one at that, they brag about is priced into oblivion to make it nothing but an overpriced bragging right.


Actually, IMHO the docking station reveals the desperation and poverty of thought at Motorola.
Here's some info you mind find useful. The current year is 2011, NOT 1969.
COMPUTATION (and even RAM) is cheap and fast. What is not fast is COMMUNICATION. In other words, "solutions" that try to replace computation with communication and stupid and backward looking.

What does Motorola's docking station get you? The ability to re-use your low-powered phone CPU (and RAM) which together cost $20. Woo-hoo!
The ONLY THING a person care's about in re-using their phone in this sort of scenario is the ability to access the data stored on that phone. In other words what makes sense is generic software that allows one TRIVIALLY to access the data on the phone from another device --- like a REAL laptop or desktop or whatever. Butthat's not what Moto is offering --- what they are offering is, as pointed out, a solution that costs more than the alternatives yet is crappier. And why? To solve the non-existent problem of "how can I re-use the slow CPU and RAM in my phone"?

And this is the mentality that is dooming Moto. Instead of looking at where the world is going, and the real problems customers have, they are looking at the problem through some sort of insane "what would be totally cool even though it is useless" eyes. Just like USB-powered vacuum cleaners.


RE: The reason I don't own an Atrix in one word:
By Chudilo on 4/6/2011 1:19:13 PM , Rating: 2
Heh. Just a screen? it's a touch screen device. It's aall screen. I won't buy an iPhone on principal ... but the Atrix is not an alternative. I hope they have enough brains to resolve the battery issue on 4G and replace the screen for the Bionic. If they don't change these parts for Verizon, my money is going to HTC. I would've given it to Samsung for Galaxy S II but they don't support their products.


By hyvonen on 4/6/2011 2:43:09 PM , Rating: 2
I don't know why you're complaining about the screen; seems to work perfectly fine. And a recent update improved battery life a lot - with my rather light usage, I get over 4 days. Also, with rebate, I paid $25 for mine.

The only complaint I have is the crap upload speeds... waiting for the AT&T update to enable faster ones.


By theapparition on 4/6/2011 5:00:47 PM , Rating: 2
Whooooa. Are you serious? Honestly never looked a the Atrix since it was on AT&T (I was waiting to take a look at cousin, the Bionic when that came out).

Why oh why would they put a pentile screen on there?

I'm pretty sure the Bionic won't get neutered like that.


By Wolfpup on 4/7/2011 1:45:11 PM , Rating: 2
Huh. I hadn't heard about that "pentile" screen tech before. Sort of strange...and at least zoomed in its super easy to see (ironically one of the cleanest images was a previous Mortorola phone without it!)

Don't know if I'd be bothered by it in real life or not.

That issue aside though, both devices look great-cream of the crop. I think the problem with the Xoom is obvious-price. It costs more than a sort of comparable iPad. I think they do something goofy even to be able to use it-like having to sign up for 1 month of service and then cancel?

They need it to be price comparable (at worst), and they need it so you can walk in and buy a Wifi or cell phone version without hassle, with no need to sign up for anything.


New management
By cigar3tte on 4/6/2011 11:56:13 AM , Rating: 2
I'd say they definitely need new management. Whose bright idea was it to release a tablet that costs more than the iPad 2? If you want to argue about Xoom having 32GB, then they should've came out with a 16GB model for under $500.




RE: New management
By rburnham on 4/6/2011 2:47:29 PM , Rating: 2
I agree, not having a cheaper WiFi only version of the Xoom at around 500 dollars hurt them. Time will probably rectify that, though, as more Android tablets hit the market.


usable in a dark room only.......
By kitonne on 4/6/2011 4:19:42 PM , Rating: 2
Looked at a xoom in staples - it was full of fingerprints, and the small areas with no fingerprints could be used as a mirror. Price is way too high given the functionality and ergonomics - you can get a better and lighter mirror for a lot less, or a decent laptop for about the same money.

I know my better half would spent more time cleaning it up then using it, so until the fingerprint issue is solved, xoom and the other glossy finish tablets are off my shopping list.

Maybe this is another reason why it does not sell as well as expected?! When you see it in the store all covered with greasy fingerprints, and you read online about the missing drivers, it kind of turns you off.....




By Lanister on 4/6/2011 4:37:27 PM , Rating: 2
It does have a lot of glare and does quickly get a lot of smudges, it doesn't seem to be any worse or better then other touch screen products. It doesn't bother me much but the smudges drive my wife crazy so she doesn't use it, which I could argue is not a bad thing :-)


Price vs current features
By Lanister on 4/6/2011 12:29:33 PM , Rating: 2
I have had my Xoom for 5 days now and while I am happy with it the only reason I bought it was I had recieved BestBuy gift cards from work. With its current features I simply couldn't justify the price.

It does feel like a 85% finished product, some features not available, its sometimes difficult to tell which apps will work on it. The potential is there to be a great product but I worry that by releasing it too soon the complaints and poor reviews will turn away potential buyers which in turn will make it difficult for developers to justify the development time.




why buy a Xoom?
By smokedturkey on 4/6/2011 2:38:48 PM , Rating: 2
I'll tell you why...
Front and back Cameras (great btw)
GPS
good build quality, nice and sturdy/heavy
has 32gb internal SD and an external slot
Rootable finally and fast as Sh!t
Is not an McIntosh Product
doesn't just work...works very damn well imho

Add up all these components seperately, camera, gps, tablet...
I say it was well worth the $599 I paid (WIFI version)

Did I mention the customizability of it? Add LancherPro and it flys. I haven't found an app that won't work yet.




Maybe because the Xoom is horrid?
By tayb on 4/6/2011 6:48:06 PM , Rating: 2
I've played with the Atrix 4G and it is a pretty awesome. Can't lie. I liked it a lot. Great screen, really cool features, cool styling, etc. Lack of marketing is probably contributing to the lagging sales here.

The Xoom? Horrible product. It isn't so much that the Xoom is a failure as it is that Honeycomb is a failure. I'm sorry but after spending half a day with that device I felt like the OS was in alpha stage. No way this was ready for prime time. Google may be on the right track with the tablet UI (vastly superior to iOS on the iPad 2) but the OS is way too buggy to expect an end user to put up with.

I was extremely disappointed with Google in this instance.




Why would anybody buy a Xoom?
By Tony Swash on 4/6/11, Rating: -1
RE: Why would anybody buy a Xoom?
By Lanister on 4/6/2011 1:33:39 PM , Rating: 5
"Why would anybody buy a Xoom?"

well, because:
It doesn't run iOS
You can't buy it in an Apple Store
It looks great
You can't access iTunes content store

The question is why would I buy an Ipad? I have an Iphone through work, why do I need a larger version of my phone?


RE: Why would anybody buy a Xoom?
By rburnham on 4/6/2011 2:49:48 PM , Rating: 2
Not having to use iTunes is reason enough to buy a Xoom.


RE: Why would anybody buy a Xoom?
By Capt Caveman on 4/6/11, Rating: 0
RE: Why would anybody buy a Xoom?
By Lanister on 4/6/2011 3:14:38 PM , Rating: 2
If the app worked well I would agree with you but it has been my experience that Itunes does not work well.

To me it all boils down to personal preference and I don't believe people who like Ipads or Xoom's are wrong. When asked my opinion I say this:

Ipad/Iphone = A wife who tells you when where and how to have sex. You know what to expect, it gets the job done and some people prefer it. It's not very exciting, but its reliable "It just works"

Xoom/Droid phones = A wife who is wild and up for anything, you can get your freak on whenever or whereever you want, problem is you might throw out your back, get arrested, or catch her cheating on you but it is a lot more entertaining.


RE: Why would anybody buy a Xoom?
By teng029 on 4/6/2011 3:23:42 PM , Rating: 2
that has to be the worst analogy i've heard for these products..


By FITCamaro on 4/6/2011 3:25:49 PM , Rating: 2
quote:
Ipad/Iphone = A wife who tells you when where and how to have sex. You know what to expect, it gets the job done and some people prefer it. It's not very exciting, but its reliable "It just works"

Xoom/Droid phones = A wife who is wild and up for anything, you can get your freak on whenever or whereever you want, problem is you might throw out your back, get arrested, or catch her cheating on you but it is a lot more entertaining.


Win


RE: Why would anybody buy a Xoom?
By kitonne on 4/6/2011 4:27:55 PM , Rating: 2
Sorry, I do not know anybody who uses a single app for everything, except maybe for XTree Pro (or ZTree nowadays :)


RE: Why would anybody buy a Xoom?
By LordSojar on 4/7/2011 3:10:45 PM , Rating: 1
quote:
[No one cares about] Flash (flash is device de-optimiser not a feature, including Flash is reason not buy a device).


Really now?

Here's some facts about Flash...

1. 1.2 billion mobile phones are Flash-capable
2. 70 percent of online gaming sites run Flash
3. 98 percent of Internet-enabled desktops use it
4. 85 percent of top 100 Web sites use Flash
5. No. 1 platform for video on the Web – 75 percent of all videos use Flash, including Hulu, Disney and YouTube
6. 2-3-million-person Flash developers community
7. 90 percent of creative professionals have Adobe software on their desktops

You really need to stop listening to everything Apple says Tony. You really really do. HTML 5 isn't even close to finalized yet, it's still buggy and the programming community isn't used to it.

So basically, buying an Apple product is like buying something and knowing you can use it to access everything in... say 2-3 years. YEH! By that time, you'll be wanting the iPad 4... So nice job wasting your money on that measly iPad 2 that can't do very much in terms of web browsing.

Oh, and Safari Mobile sucks.....SUCKS. I'm enjoying my tabbed browsing and Flash 10.2 on my Xoom while you rot without it. :)


By kmmatney on 4/8/2011 2:38:22 PM , Rating: 3
I have to say - I don't miss flash one bit on my phone. Maybe in the 2 years I've had my iphone, the lack of flash was maybe annoying 1 or 2 times. There are also a few different tabbed browsers you can get for the iPad, so that is not an issue.


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