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Motorola hopes that a price cut will help out its laggard Honeycomb tablet

The writing has been on the while for quite some time now: Motorola's Xoom tablet has been a sales bomb in the marketplace. The Xoom was the flagship model for Google's Honeycomb tablet operating system, but newer competition has hit the ground running with cheaper models and sleeker designs. 

To help combat the new competition, Motorola is dropping the price of the 32GB Xoom (Wi-Fi-only) from $599 to $499. This undercuts newer rivals like the 32GB Samsung Galaxy Tab 10.1 by $100. However, the new pricing simply puts it at price parity with the 32GB ASUS Eee Tab Transformer.

Motorola still doesn't have an answer to the 16GB ASUS Eee Tab Transformer that starts even lower at $399.

This new price for the Xoom will likely stay in place until the arrival of next generation tablets running NVIDIA's quad-core Kal-El ARM processor and Google's Ice Cream Sandwich operating system which will unify smartphone and tablet codebases.





"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer



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