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March 11, 2011

Motorola Xoom Sales Fails To take off

It seems that  there is no unanimity about  how  well Motorola Xoom  are being received in the marketplace .According to Analyst Peter Misek of Jefferies & Company tells ZDNet that Motorola’s tablet, even with its higher-resolution screen and faster processor than the Apple iPad 2, is not exactly flying off the shelves:
“Xoom sales have been underwhelming. While marketing has just started we believe MMI 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.”
However .According to Sanjay Jha, CEO of Motorola, Xoom sales are “off to a good start”. Though he did not divulge exact sales numbers to the group of financial analysts he was addressing at the Morgan Stanley Technology, Media & Telecom Conference.
The 10.1 incher Motorola Zoom  from Verizon is selling at $800 without contract and $600 with a 2 year customer agreement. Compared to a high-end version of iPad (that’s not 3G) at $729, Motorola Xoom has more of everything – NVIDIA’s Tegra 2 dual core processor, 10.1 inch HD touchscreen, Wi-Fi, 3G, Honeycomb, and a whole lot more. And it’s going to get Adobe Flash 10 Support and 4G support in an update soon
Last year Motorola Mobility sold apparently two million smart phones to China. The  Xoom powered by ‘Honeycomb’ is the first among the tablet computers to hit the market. It is specially designed for the devices like Internet powerhouse Google and has emerged as one of the major competitors of Apple’s iPad which was ruling the market till now. Xoom has been priced at $800 but there is every chance that it will be reduced to $600 for the ones who enter into a contract with Verizon for two-years.