Motorola Xoom Having Poor Sales So Far?

Analyst Says Xoom Sales Are Awful, Motorola Preparing To Cut Production, Is The First Honeycomb Tablet A Flop?

I recently reviewed the Motorola Xoom and found it to be a great tablet experience, save for a few bugs with Honeycomb. But, not many folks are giving the Xoom a chance, by the looks of it, as it’s being reported by an analyst that the Xoom is doing poorly and Motorola will be cutting production of the device soon.

Analyst Peter Misek from the Jefferies investment group wrote:

Xoom sales have been underwhelming. While marketing has just started we believe MMI [Motorola] will likely have to cut production if it already has not done so. We believe the device has been a bit buggy and did not meet the magic price point of $500. We believe management knows this and is hurrying development and production of lower cost tablets. Importantly we believe management will likely have to make the painful decision to accept little to no margin initially in order to match iPad 2’s wholesale pricing.

I guess a lot of reviewers claim that Honeycomb is extremely buggy and crashes a lot. I never experienced a single crash while using the device, but it does have a few bugs. I guess, for the high price of the Xoom ($800 off-contract/$600 on-contract), folks were expecting more from the Honeycomb tablet.

Regardless, there are rumors of cheap(er) versions of WiFi-only Xooms coming to big retailers like Best Buy and Sam’s Club, usually around $500. If that turns out to be true, I, as somebody who spent a week or so with the device, thinks that would be a good price-point for the Xoom (or the “magic price point” as Misek wrote).

Have you tried the Xoom? What do you think about?

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  • 3 Comments / Add Your Response?

    1. jesterking says:

      It’s only poor sales because the price is so damn high!

    2. dave says:

      This is what they get for locking the bootloader in their phones. They turned their back on the community and now they’re paying for it. I hope they go under.

    3. dXoom says:

      From the IT side, the device for me has been awsome. Used to remote into everything from XP to server 2008 and more with no problems and a super smooth screen refresh. The number of programs on the market are disapointing but I bought it for business use and it has great apps in that side of the fence. Unlike Apple that has 40,000 ways to produce fart sounds of which all can be done without.

      I must say the device has gotten bad reviews from unfair usage and testing of possible buggy apps and reviewers with a biased approach or history. My Xoom has not been turned off other than to sleep and has yet to crash or force quit anything other than one or two sessions of Angry Birds or Pandora. Both of which I consider not worth the mention as all the reasons I bought the device for work without fail.

      Compare apple to apples not oranges. Ram for ram and the like. I get over 14 hours out of my normal usage between charges and never bother to charge over the weekend when just checking email. Try that with an iPad.

      Yes I do believe the device is priced about $50-75 higher that it should be but again its the first…and has a few hidden features that will not be on some tablets…after all its the G1 of tablets.

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