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Print 30 comment(s) - last by cmdrdredd.. on Feb 17 at 7:44 PM

Motorola's CEO spills the beans on Xoom pricing

Reuters today confirmed what we already know about the Motorola Xoom (3G/CDMA) -- it will be priced at $799 unsubsidized through Verizon. There will also be a Wi-Fi-only model available for $599. 

"Competing with Apple you have to deliver premium products," said Sanjay Jha, Chairman and CEO of Motorola Mobility.

The $799 price tag for the Xoom 3G will get you 32GB of storage space, a 10" display, and a dual-core processor. Despite it devilishly good looks and sleek Android 3.0 "Honeycomb" operating system, the data plans for the tablet may be a little bit harder to swallow. Data packages are reported to start at $20/month for a mere 1GB and top out at $80/month for 10GB. 

Motorola's Xoom will officially launch next Thursday. 

Jha also chimed in on the whole Nokia/Microsoft saga, stating, "I am as focused on Android as I ever have been. As a result of Nokia adopting Microsoft it's possible that some of the other players concentrate on Android," Jha continued. 

These comments come just a day after another Motorola exec expressed no interest in adopting Windows Phone 7 for its smartphones. "I don't envision us using Microsoft. I would never say never but it's not something we're entertaining now," said Verizon Corporate VP Christy Wyatt.



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RE: Lets compare features...
By Tony Swash on 2/17/2011 6:49:19 AM , Rating: 2
quote:
I personally would rather own a laptop, but lets compare features...

Motorola Xoom WiFi (32GB)
-Price: $599
-10.1" display, 1280 x 800 @ 160dpi
-Processor: nVidia Tegra 2 dual-core
-OS: Android 3.0
-USB port(s)
-HDMI port
-5MP camera, 2MP video conferencing camera
-1080p playback support (scaled, of course)
-Sensors: accelerometer, compass, gyroscope, barometer

Apple iPad WiFi (32GB)
Price: $599
-9.7" display, 1024 x 768 @ 132dpi
-Processor - 1GHz ARM Cortex-A8 single-core
-OS: Apple something
-No USB ports
-No HDMI ports
-No cameras
-720p playback support
-Sensors: accelerometer, compass

Looks like the WiFi version blows the iPad out of the water. 3G, not so much...


Leaving aside the value of comparing this years product with last years release it's worth remembering that specs don't mean much in the real world.

I know techies love spec lists it makes the world seem an orderly and safe sort of place. But spec list mean almost nothing in relation to how well a particular product does. What matters to consumers is a whole package of complex and interrelated factors that make up the value of the product. In that complex package of attributes some things will be weighted more than others (price is a good example) and some consumers may value some things more than others. But what really matters is the total effect of the total stack of value a consumer gets from a product. Let's list the sort of extra value a consumer gets from an iPad compared to any of the current batch of Android tablets trundling towards the market place.

a) The iOS is extremely polished. Most non-affiliated neutral observers say the iOS is more polished than the current versions of tablet and phone Android OS. The difference is not huge but it is there and people handling competing tablets, iOS versus Android, will notice that one OS is more polished than the other.

b) Brand. iPad now has very high brand recognition. The Android competing brands have far less well known brands and the there are many competing brands in the fragmented Android tablet market.

c) A reputation for quality. One may argue that this is deserved or undeserved but if Apple again and again tops reliability and customer service polls consumers will and do notice. Any consumer researching a possible purchase would come across this unambiguous message based on polls and surveys and not press releases.

d) A top class retail network. The Apple stores are one of the most successful retail operations on the planet and any visit to one would show the way that the stores both showcase the Apple products, allow purchaser to play with possible purchases and give them the opportunity to interact with apparently unhurried and helpful staff. The experience of interacting with an Apple retail store is often very much better than interacting with other electronic retail stores.

e) Apple's App Store is the best. It is the most vibrant, the biggest has the largest group of developers. Finding, buying and installing apps is super easy and is done via an interface (iTunes) familiar to many hundreds of millions of consumers.

f) Media content. An iPad user finds an easily accessed and familiar interface for accessing the largest music and digital media business on any tablet. Finding, buying and consuming this huge library is easy on an iPad, again done done via an interface (iTunes) familiar to many.

g) Existing digital content commitment. Many consumers have been building a library of apps, music, film, TV shows, etc bought via iTunes and don't want to lose this valuable investment by switching away from Apple (much like photographers lens collections tie them to a particular camera body)

h) Customer have been "trained" via the Apple product gradient. Apple has sold over 250 million iPods (the most popular iPod is the iPod Touch which runs the same iOS as on the iPad ) and over 50 million iPhones so countless millions of consumers have grown used to using iOS and accessing the iTunes interface and already have active accounts ready to go from the moment they purchase the iPad. The music player of the iPad is a built in iPod, again known and understood by many millions. All this means for many, many consumers buying the iPad seems safe, familiar and a logical and obvious step.

i) There are far more accessories for the iPad. This means many more cases, stands, speakers, chargers, FM broadcasters, interface solutions, etc, than any other tablet. This adds enormous value to the iPad from the customers point of view (the iPad is "compatible" the other tablets are not) and is because Apple represents for accessory makers a large market of potential customers using a predictable physical form factor to target and the same manufacturers have often already developed an Apple orientated business working with iPods and iPhones so many have found adding iPad accessories an easy step.

Finally it is worth pointing out that again that Apple have one of the best run supply side and production operations on the planet, they planned for the iPad for a long time. Beating Apple significantly on price with out a serious deterioration of build quality is going to be very heard indeed. See this for an example

http://www.digitimes.com/news/a20110216PD219.html


"And boy have we patented it!" -- Steve Jobs, Macworld 2007














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