The Motorola Xoom represented a fairly important device. It was viewed as the first real competitor to the iPad and many hoped for it to inject some variation into the slate tablet market the iPad had essentially created. Well, initial reports are that the device is not selling as well as planned and production may even be cut on it due to decreased demand. With Motorola hoping for 800,000 units sold by summer, it appears they are having to adjust their sales forecast.
I, for one, am not surprised by this. The Xoom appears to be a compelling device, but initial reports are that the initial version of Android 3.0 (Honeycomb) it is running is quite buggy and feels unfinished.
The more important reason is likely a simple one...price. I went through the pricing of this tablet in a previous post here and mainly ridiculed Verizon's high data pricing, but I think I should have cautioned uptake in regards to the actual unit price more. No single comparable Xoom model costs less than an iPad and most cost a fair bit more. With Apple's considerable brand equity/strength, this is a huge problem for Motorola.




