vacancies advertise contact news tip The Vault
facebook rss twitter

Xoom or bust?

by Scott Bicheno on 6 April 2011, 16:48

Tags: Motorola (NYSE:MSI), DSG International (LON:DXNS), Google (NASDAQ:GOOG)

Quick Link: HEXUS.net/qa5hm

Add to My Vault: x

Slow starter

Despite its rapid gains in the smartphone market, it looks like Android has its work cut out for it in the tablet space.

The webosphere is quite down on the Motorola Xoom today, following some analyst reports suggesting not many of them have been sold.

Forbes noted a research note from Pacific Crest analyst James Faucette stating that his channel checks have revealed disappointing sales of both the Xoom and the Atrix Tegra 2 smartphone. On that basis he's cutting his revenue forecast for Motorola Mobility.

Meanwhile the Android developer site has published information detailing which versions all Android devices are using based on those that accessed the Android Market in the last two weeks of March. The good news is that the majority of phones are on at least Android 2.2, but the bad news is that only 0.2 percent are on 3.0 - Honeycomb.

 

 

This data has led to a bunch more conjecture about initial sales of the Xoom, which is the only Honeycomb device on the market right now. Deutsche Bank analyst Brian Modoff reckons we're looking at around 100,000, which is much less than Apple has typically sold on the first day of an iPad launch. Having said that Modoff notes this is more or less in line with expectations.

Over on this side of the pond there are reports that Moto is having a bit of a rethink about how to market the Xoom, possibly in the light of disappointing sales in the US. The fact that PC World has yet to start selling the Xoom, despite saying on the site that it will be available in the first week of April. is perhaps further indication of a rethink from Motorola. As is a pre-launch price drop of £20.

Most neutrals will be hoping the Xoom sells well - if only to bring balance to the tablet force. But these initial signs are another reminder of how tough it is competing with Apple these days. Estimates of iPad 2 sales are north of 2 million already.

 



HEXUS Forums :: 14 Comments

Login with Forum Account

Don't have an account? Register today!
Looks like Motorola is a bit late for the iPad 2 party?
Forbes noted a research note from Pacific Crest analyst James Faucette stating that his channel checks have revealed disappointing sales of both the Xoom and the Atrix Tegra 2 smartphone. On that basis he's cutting his revenue forecast for Motorola Mobility.
Umm, weren't these just announced at CES in January - in which case they've not been on sale for that long?

Plus, from the feedback I've seen, there's a lot of folks staying away from the Xoom because of Moto's daft pricing (more than the iPad2, when even Google aren't saying that Honeycomb is “finished” yet).
I'd lean more on manufacturer fault than “competition” with Apple as being the cause for the lacklustre results.

Besides that we have yet to have any of the really encouraging tablet prospects released. If all Android tablets stumble out of the blocks then you have something tangible to draw the “competition” card from.
You'd have to either get a very good deal or be determined to not go the iPad route to choose the xoom at present.

When the tablet version of Android is a little bit more mature and more options are out there the developers may start to create good things for the Android tablets. At the present I don't think there is many apps out there for them?

I can really see Amazon making an android tablet/kindle and subsidising the costs to get app and book sales through there store. I think that would be a really compelling alternative to the Xoom/Playbook etc. The kindle seems to be a roaring success for them, so they have some experience in the area.
Gordy
When the tablet version of Android is a little bit more mature and more options are out there the developers may start to create good things for the Android tablets. At the present I don't think there is many apps out there for them?
Is that a similar situation to the iPad? That is, that there's a lot of apps that'll run on it, but not many that are designed for it/them? I don't know for sure - that's why I'm asking.
Gordy
I can really see Amazon making an android tablet/kindle and subsidising the costs to get app and book sales through there store. I think that would be a really compelling alternative to the Xoom/Playbook etc. The kindle seems to be a roaring success for them, so they have some experience in the area.
Oooh, I like that piece of thinking - a “Kindle+” for about £250-300 (or less?) would be quite appealing. Don't forget that most tablets can also play music - so bundle Amazon Kindle, App Store and MP3 Store apps and I think you'd be onto a winner.
:clapping: