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New Android tablets put even more pressure on failing tablet

While Google Inc. (GOOG) has a credible record when it comes to mobile operating systems -- having made the booming Android operating system -- its track record when it comes to flagship hardware is decidedly more mixed.  

Every major OS release Google designates a "flagship" hardware model.  For example Android "Eclair" 2.1 was fronted by the Nexus One.  For Android "Honeycomb" 3.0 -- Google's new tablet-specific Android distribution -- that flagship model was the Xoom.

The Xoom has been billed in the media as a promising, but unpolished product.

Set at a lofty price of $599, it has failed to compete not only with thinner, lighter iPad 2 from Apple, Inc. (AAPL), but also cheaper Android tablets.  Yet another sales analysis has landed and the picture sure isn't pretty.

The Nexus One wasn’t a sales blockbuster, and according to some estimates, the Motorola Xoom may be doing even worse.

Global Equities analyst Trip Chowdry claims that Motorola (MMI) is sitting on an enormous overstock of Xooms.  According to his estimates, the company produced between 500,000 to 800,000 units, but has only sold between 5 to 15 percent of them.

That estimate means that the best-case scenario is that the Xoom has moved an anemic 120,000 units in the two months since its release.  And the worst-case scenario is simply crushing -- that only 25,000 Xooms have been sold.

And it may only get worse.  South Korea's LG Electronics is preparing to release its G-Slate tablet, priced at $529 USD.  And in June two new Galaxy Tab models from Samsung Electronics (005930) land at under $469 and $499.  And that's not to mention Dell's Streak refresh and other coming products.
 

Even more troubling for Motorola is the fact that ASUS today launched its Eee Pad Transformer Honeycomb tablet that is priced at $400 for a 16GB Wi-Fi model and $500 for a 32GB Wi-Fi model.

In short the outlook for Xoom isn’t very promising.  The fact that analysts once estimated that the device would sell 3 to 5 million units makes its sales even more embarrassing.

The tablet is boldly venturing into waters of commercial disappointment seldom sailed before.  Its flop may only look graceful in light of the ultra low bar that Microsoft's infamous Kin project set for a mobile failure.  But that's not saying much. 



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RE: idiots
By quiksilvr on 4/26/2011 10:08:39 AM , Rating: 2
It's simple marketing economics: DON'T PRICE YOUR PRODUCT MORE THAN APPLE!!!

The WiFi model should have sold for $479 and they should have advertised to death on how much cheaper it is.


RE: idiots
By JMC2000 on 4/26/2011 10:46:54 AM , Rating: 3
Exactly. It seems as though no one could figure this out before.

What do you get from Apple?
64GB WiFi-only iPad2 for $700
32GB WiFi+3G iPad2 for $729
64GB WiFi+3G for $829

Did you know that the 3G Xoom is STILL $800 at WorstBuy, and the WiFi-only version is 'only' $589, a whole $10 savings!

You wanna know what really hurt the Xoom's chances, that deal mandatory prepaid one-month data from Verizon.


RE: idiots
By Lanister on 4/26/2011 11:22:16 AM , Rating: 2
quote:
You wanna know what really hurt the Xoom's chances, that deal mandatory prepaid one-month data from Verizon.


What hurt them is stuff like this, people spreading misinformation. I did not have to buy any prepaid data; the only people who did were people who bought the subsidized version from Verizon.

As for price (from BB website)
32 GB Wifi only Ipad2 $599.99
32 GB Wifi only Xoom $599.00 on "sale" for $589.99 - Now once they enable the SD card slot you would have to compare it to the 64 GB Ipad which is $699.99. Also you would be able to swap out that SD card giving you technically limitless storage.


RE: idiots
By JMC2000 on 4/26/2011 11:39:52 AM , Rating: 2
I'll admit, I stand corrected on the pricing comparison.

As for you not having to buy the prepaid data, exactly when did you get your Xoom, because I went in to my local BestBuy to look at one when it first came out (3G only), and I was told that I would have to buy at least one month of Verizon prepaid data service, that was a no-sale to me.


RE: idiots
By Lanister on 4/26/2011 12:34:14 PM , Rating: 2
It was almost 4 weeks ago. I did some searching and it appears I stand corrected on the activation fee. It doesn't appear it was ever required for the Wifi version but if you bought the 3G with no subsidey you were still required to buy one month of data as an "activation fee". Seems that people complained that it wasn't fair that the Ipad didn't have the same requirement so Verizon dropped the fee, at least for now.

If I paid full price for a product and Verizon still forced me to buy a month of service to activate it I would tell them to go F### themselves also.

I love my Xoom, but Moto failed big time on this launch. The product was rushed out the door not 100% complete and without a good marketing campaign in place.

Does anyone know if the HW vendors get a cut of any app sales? Apple gets a percentage of every app sold, so they can afford to sell the HW for a little less knowing they will get additional money for the apps down the road, if Moto and other Droid vendors dont get any money for apps its going to be difficult to compete on price.


RE: idiots
By KentState on 4/26/2011 4:44:16 PM , Rating: 2
I purchased mine from Best Buy the day after the iPad2 was released and wasn't required to buy the one month plan.


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