Xoom cost and release info disappointment

Discussion in 'Motorola Tablets' started by PowerPlayGraphix, Feb 7, 2011.

  1. PowerPlayGraphix

    PowerPlayGraphix Member

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    I am GREATLY disappointed in the fact that the Xoom is launching as only 1 version that is 3G only at $799 AND a mandatory 3G activation (for at least 1 month) to even be able to USE WIFI. This is absolutely asinine and will make the XOOM DOA! I voiced my displeasure to Motorola in the quoted email below:


    "I have to say, as interested as I was in the Xoom, the recent information that there will be only configuration for $799 and that it will require a mandatory activation of 3G service to even ACTIVATE the wifi is absolutely ridiculous. You are killing the Xoom before it's even born. I say this as not only a possible consumer (and current Motorola Droid 1 user) but also as a marketing professional. You have shot yourself in the foot in both timing and lack of variety in selection

    There is a HUGE groundswell of disappointment on all the Android and tech sites over the price and the forced "tax" to Verizon. Even the "dedicated" Android fans that would never buy an iPad are saying they will continue to wait for the LG Tab or even root a nook rather than pay for a premium tablet when a base model would do. Even though these Android fans are important, they are NOT the primary customers that will make this a success or you would not have spent $3 Million to buy one ad in the superbowl. You want "the masses" to see this as the first true competitor to the iPad and to give it a try. It IS the first real competitor to it but having only ONE price and requiring customers sign up for a monthly service (even if you can cancel it after one month) is ridiculous and will keep potetial customers away. Even Apple realized that if they set it too high, they wouldn't sell as prolifically as they have and would have another "niche" product that had potential but most folks wouldn't consider. Having a starting price that's HIGHER than Apple's comparable iPad is going to kill it.

    Also, I predict this. now that there is a firm "launch" date, Apple will have it's iPad 2 event on Feb 22. 2 Days before people can buy Xoom. They will show an iPad that has almost all the same features, dual core A5 processor, dual cameras, Retina display level screen, SD card slot, 32GB built in memory, 12 hour battery, Airplay, facetime, etc, all the "problems" the Xoom brags about over the iPad 1, and all starting at $499. This will freeze the potential "swing buyers" and kill the sales in their tracks. People that MIGHT have bought it will wait another 2 weeks to buy the new iPad 2. Consumers see the iPad as the standard bearer and all other tablets, no matter how good techies might know they are, as copy cats. The only way a new tablet will be remotely competitive is if ISN'T more expensive and can sway the general populace that it is at least as good if not better for the same price. The best selling iPad is the lowest price. Parents buy them for kids so they don't have to pay another fee to use it. College kids buy it because all the dorms, classes and coffee shops have WiFi. Most of the "gifted" iPads are wifi only.

    Take this from a person that is in marketing for a living, a technology buff and both an Apple and Android fan. Motorola is making a BIG mistake with it's entry into the tablet market without having at least 2 models. You need one at $599 that has wifi only and 16 GB internal memory with all other specs being the same and the one that has been announced. It would give you 2 good solid competitors in to price ranges that widen the potetial market and that have at least SOME chance of fending off the iPad 2.

    I'm predicting the launch will be MAYBE 30-50k sold the first weekend, 110,000 the first week and MAYBE 200,000 by the time iPad 2 launches then sales will die before they hit 1,000,000 pieces because no standard consumer will buy the "copy" (which, face-it, the general populace will see this as) when they can buy a "real iPad" for less. Parents, casual shoppers, etc will NEED matching pricepoints before they will remotely consider it.

    I would buy one opening weekend if they had the $599 one, but I'm not paying an extra $220 for a function I don't need or want and another monthly service that could be accomplished tethering or bluetooth by a service I'm already paying for. If you put out a $599 that seamlessly tethers with other Motorola android devices, you will sell more than you can make. If you lock to this "one model" only strategy, it will not compete. don't wait too long to release the wifi only, or you will regret it."
     
  2. HTC Fan

    HTC Fan Member

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    Good email. I really want the accessories that come with it. Starting at $800 and then adding other stuff will put me at over $1000...

    I'm waiting for HTC Scribe and/or maybe wait 3 months until the price drops.

    I'm really disappointed as I was actually looking forward to getting a great tablet.
     
  3. Droid4Life

    Droid4Life Member

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    I'll have a new Xoom in my hands on February 24th. I think it is priced perfectly. And that is from another Marketing professional.
     
  4. HTC Fan

    HTC Fan Member

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    XOOM is a great tablet and if you compare the specs to price wise it is perfect. However, android fanboys will get this over an ipad any day....price doesn't matter, but fanboys are such a small % of the consumers. Everyday users is what you want to target and yes that means people with ipads or people who are looking to by a tablet. Not everyone wants the most expensive thing because most likely because they can't afford it, but most importantly people are always going to compare this to the ipad. Will they care about a more powerful processor or better OS? Or will they look at the $300 price difference and think...actually I don't need 3G or that extra 16 gb as I put my music on my phone/ipod anyways.

    @Droid4life perhaps they need to make it $800 to have a good profit margin, but I don't know how you can say that $800 for the XOOM is price perfectly for the consumer (note again that I want one) because it is simply very expensive.
     
  5. feverhost

    feverhost Super Moderator Staff Member

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    My Tablets: Pandigital White Novel - aPad iRobot RK2818 - Motorola Xoom 4G (Rooted JellyBean 4.1.2) - Kindle Fire - Novo Elf 7" - HP Slate 7" - Lenovo Yoga 2 Pro
    I've been a marketing director for quite some years now... and I think their price point is way over priced. Only time will tell... give it 3 months, and we'll all know how that $799.99 worked out.

    The way Apple changed things a bit in 1984 is they offered something that was "different", something unique... intriguing. The Xoom doesn't really do that. It's a direct competitor to what is already out there, the iPad... then the iPad2. It's not a smart marketing strategy to compete directly with a dominant competitor in their own field... which is higher end market devices.

    I don't necessarily think the iPad/iPad2 is going to kick the Xoom's butt... I think other android tablets will. You know.. the other 20+ tablets that will be released with much lower prices by other very well known companies?

    Just about everyone is saying it... (Average Joe; who can afford)... "iPad or Xoom... what the heck is a Xoom? Naw... iPad it is." Why... people know the iPad, people want the iPad... the only way to beat a product this popular is is beat their price. It is one of the oldest marketing strategies in the book. Can't complete... lower price.
     
    Last edited: Feb 7, 2011
  6. Admin

    Admin Administrator Staff Member

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    I'm hugely disappointed as well. We've got a few discussions about it here: Motorola Xoom Forum
     
  7. Droid4Life

    Droid4Life Member

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    Can you explain then how something of such superior quality could be priced at anything less? I agree that $800 is expensive. Should Moto release a wi-fi only or less quality version to stay competitive? Well, that is another topic entirely.
     
  8. Droid4Life

    Droid4Life Member

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    Can I honestly ask then, what a "competitive" price for the Xoom would have been?
     
    Last edited by a moderator: Feb 7, 2011
  9. pbrauer

    pbrauer Administrator Staff Member

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    IMHO here is the true bottom line, very rarely does the purchase or market price of any new technology accurately reflect the cost of the goods being sold, and this is especially true in the Mobile Technology Market. These costs are usually underwritten to at least some extent by the Network Provider to get users locked into contracts or service agreements. Does anyone really believe that the huge price drops in new devices 3 months after they come out is due to the manufacturer setting a price? This is how Verizon, T-Mobile, AT&T can do the various buy one-get one promotions etc.

    So, if you believe that the $799 price is solely a MOTOROLA decision, you are most likely mistaken. This is a carefully determined price, from vendors that have made themselves dominant in their market segments. Does not mean I like it, while I think it is properly priced for what it is, it is NOT properly priced for what it is PERCEIVED to be, and in the end that is going to hurt
     
  10. pikapp168

    pikapp168 Member

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    Just some background info on me...
    I am a District Sales Manager for the GA Market for Sierra Wireless. Sierra makes aircards for carriers like Sprint, AT&T, and Clear. I have reached out to my friends at Motorola (one on AT&T and the other on Verizon) and let them know of the disappointment of all the Android users and users across all the forums/sites. I did this in attempts that maybe they would mention something on a conference call.

    I have a meeting tomorrow and the Moto people will be there-if I see an executive then maybe I'll pull him aside and say something.
     
  11. HTC Fan

    HTC Fan Member

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    I think the problem is that apple has a tiered system so it always seems that the price of an ipad is cheaper, but we have to remember that there is no 3G and less storage etc. The tiered system works really well for them because they have cornered people because they can't expand the memory via SD cards so the difference in flash memory is actually quite a big deal but for Android/usb/sd card fans that isn't a problem so it is harder to do a tiered system.

    $800 is probably the correct price for this tablet if you think about the specs, but Motorola and Verizon have only one tablet and at $800 are only selling to a very limited number of people. I have always thought a $599-699 selling point would have been alright.

    Make less profit? Yes.
    Sell more units? Yes.
    Get people to show off their quality product? Yes
    When the next great item comes out people will remember the brand Motorola? Yes
     
  12. feverhost

    feverhost Super Moderator Staff Member

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    My Tablets: Pandigital White Novel - aPad iRobot RK2818 - Motorola Xoom 4G (Rooted JellyBean 4.1.2) - Kindle Fire - Novo Elf 7" - HP Slate 7" - Lenovo Yoga 2 Pro
    In my humble opinion a price of $499.99 - $549.99 would of been more acceptable. Anything over $600, right now, isn't going to fly off the shelves. Not in this economy...
     
  13. Gorilla72

    Gorilla72 Member

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    You know, I am a big Apple Coolaid drinker, and I also have lots of love for Android. But I got to tell you, 800.00 dollars when you are trying to make a dent in Apple iPad sales? HA! Come on, I don't care if the thing transforms into a french maid for you on command, no one is going to look at that thing, and say, "Ya I am going to spend 800.00 over 499.99 (599.99 for 32gig) for an Ipad, for an unproven product. I am always reminded of the Winblows vs Apple. Most people, to this day, will buy a Windows Machine because that's what they are used to, that's what they use at work, etc.. Same thing goes for Mp3 Players, everyone has an iPod, that's what I know, and now same thing goes for Tablets, iPad is "THE" tablet. Yes yes, the fan boys like us who KNOW how to do magical things with these devices can go on and on that Android is better, Xoom is worth the 800, but bottom line, when Joe EverySchmo is in Fry's looking for a tablet, he's going to pass on all the over priced (good) ones, the hung of crap, let me just put a tablet out there right now, models, and go buy an iPad (or ipad 2).

    Just my opinion, I could be wrong. Let the hate mail roll!
     
  14. newnick

    newnick Member

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    I am in market for a second tablet now and need to buy it by the end of feb. Love my 399 galaxy tab. It basically does everything I need and want from a tablet. I dont see myself ask for a doubled price tablet regardless it's spec.

    I am not a brand, or platform fan boy. I am not a tech person. I am an average user who just need a reliable tablet to perform simple and mobile tasks.

    If I need a 10 inches tablet, I will probably get a $499 or 599 ipad. Otherwise, one more $399 galaxy tab will be a good choice.

    Sent from my sdk using Android Tablet Forum App
     
  15. superbike81

    superbike81 Member

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    I hope they add a Wi-Fi only version, but I hope it's not like the iPad where they remove the GPS chip if you don't get 3G.
     

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