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Motorola defends pricing of Xoom

by Sarah Griffiths on 17 February 2011, 10:25

Tags: Motorola (NYSE:MSI)

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Xoom or doom?

Motorola has revealed its new Xoom tablet will cost a whopping $800 in the US, making it more expensive than Apple's iPad.

The company's mobility chief, Sanjay Jha said the tablet will be 4G compatible on Verizon's network and was therefore worth the extra cash compared to Apple's 32GB iPad with 3G, which costs $729, The WSJ reported.

"We felt that our ability to deliver 50Mb/s would justify the $799 price point. It is 32GB with 3G and a free upgrade to 4G. Being competitive with iPad is important. We feel that from the hardware and capabilities we deliver we are at least competitive and in a number of ways better [than the iPad]," he reportedly said.

Indeed, HEXUS got its hands on the new Honeycomb tablet at MWC and was impressed with its multitasking ability, graphics and speed, predicting it should do well against its competitors.

However, there is also a Wi-Fi only version set to launch in the US and Europe too. While Jha did not reveal the price, he told the newspaper it will be "meaningfully cheaper. The price is set by iPad at $599 [in the US] and we will be right around there."

Jha reportedly said the Nokia-Microsoft tie-up will make it hard for other firms in the market and reckons that the Nokia deal could push some of its competitors towards Android and away from Windows Phone. He said: "Android then becomes a place where there are more players and a much more competitive environment."

He apparently hinted that he found it frustrating to have to link Motorola's tablet so closely with Google's Android OS, and that he wished Motorola had its own OS, but that it does not have the size and manpower to build its own ecosystem.  Jha also reportedly admitted that his company had a lot of work ahead in order to win back customers in Europe.

While Motorola's Droid smartphone series has been a hit in the States, the last ‘must-have' mobile in the UK was the Razr, whit hit the shops back in 2005.

Jha reportedly said: "Our brand today is weakest in Europe, and it requires more work and investment. We are repositioning our brand in a way that is new to the Europeans. The last thing Europeans saw from us was the Razr, which was a very voice-centric phone. There is no doubt we have money to spend. Consumers still have high regard for the brand name."

*Update*

Motorola has just confirmed the Xoom tablet will launch in Europe, specifically at The Carphone Warehouse, Best Buy, Currys and PC World in the UK.

The Carphone Warehouse and Best Buy will launch the 3G/WiFi version, while Currys and PC World will get the Wi-Fi version in Q2 of 2011.  Annoyingly, no details of cost are available just yet, although no doubt the US pricing will give would-be customers a clue.

Graham Stapleton, CCO at The Carphone Warehouse and Best Buy, said: "2011 will be the year of the tablet. Demand for tablets has already been greater than expected and the next 12 months will see them being adopted by more and more people as new products are unveiled. The Motorola Xoom sets the bar incredibly high; its functionality and ground-breaking features means it offers one of the richest user experiences I've ever seen."



HEXUS Forums :: 3 Comments

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It'll bomb just like the Galaxy Tab did until they reduce it to a reasonable price point (as happened pretty sharpish with the Galaxy, can now be had for £250!)

Regardless of what they think people will not pay a premium for a generic Android tab, Motorola certainly do not have the brand appeal that Apple do (regardless of individuals' own opinion this is pretty much a fact)

I don't see people paying such a premium for 4G, obviously Motorola do, let's see who's right in 3months time…
Rob_B
It'll bomb just like the Galaxy Tab did until they reduce it to a reasonable price point (as happened pretty sharpish with the Galaxy, can now be had for £250!)

Regardless of what they think people will not pay a premium for a generic Android tab, Motorola certainly do not have the brand appeal that Apple do (regardless of individuals' own opinion this is pretty much a fact)

I don't see people paying such a premium for 4G, obviously Motorola do, let's see who's right in 3months time…

Totally agree. I'm no apple fanboy either, the last “apple” product I ‘owned’ was my dad's apple mac when I was about 5. Not really a fan of apples stuff nowadays and I think the price is prohibitive.

However, clearly there are millions who do not see it that way and for a company like motorola to compete with apple it has to exceed the hardware considerably AND more importantly, undercut them on price significantly. Countless other companies have tried competing toe-to-toe with apple and it has never worked, especially if they are in a similar price bracket.

This is suicidal for Motorola if you ask me. They are brand with very little currency (I'm not talking in monetary terms here) in the eyes of European consumers and they are hugely mistaken if they think such an overpriced tablet will turn their fortunes around
HEXUS
Read more.
Well, quite.
800 US beer tokens for a mee-toooo product? Madness.

People are surely not that stupid? The hardware is about 75% of what is in a netbook, so it should cost about 75% - especially since there are no licencing fees.

And what is the betting that despite the 1.6 exchange rate USD800 = GBP800