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Motorola shipped only 250,000 XOOM tablets, posting a significant loss

Posted: , by Ken N.

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Motorola shipped only 250,000 XOOM tablets, posting a significant loss
There was no doubt in our minds that the Motorola XOOM would represent the first real competitor to Apple's iPad. But, due in part to its exorbitant price tag, the XOOM has experienced pretty disappointing sales. Motorola Mobility reports that it has shipped about 250,000 XOOMs.

Then again, 250,000 is well above earlier estimates of 100,000. But 250,000 is nothing for them. Motorola Mobility shipped a total of 9.3 million devices, 4.1 million of those being Android devices.

Motorola Mobility posted a loss of US$81 million, but that's still down from $212 million a year ago, before they split from their infrastructure division. Revenue was up from $2.48 billion to $3.03 billion. So why did they lose money? Between the Atrix 4G and the XOOM, Motorola Mobility spent a fortune on advertising. And that Super Bowl ad wasn't cheap.

One could explain the XOOM's relatively low sales as a failure, but it can also be seen as an investment in maintaining their Android credibility. Regardless of whether we were willing to pay for such an expensive machine, we still respect Motorola for making it, and that will affect our purchasing behavior.

source: Electronista

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posted on 28 Apr 2011, 17:55 2

1. John (unregistered)

In a few years you'll have a full blown version of windows 8 on a tablet. Whoot whoot!

posted on 28 Apr 2011, 18:24 9

2. Jay (unregistered)

Hmmm $800 outright for 3g or $600 on a 2 yr or for wi-fi... I wonder what went wrong?!?! I swear some companies are idiots! You can't expect your device to outsell Apple with the same price! Lower the price and you will see your product move alot more! You don't see Chevy pricing the Corvette the same as a Ferrari. Yes the Ferrari is a more detailed and hand crafted machine, but its a competitor. Business 101... if you have a product to compete with someone elses whos product has been out for over a year, you have to price it under to keep potential customers interested and go with your product because it is priced lower then one of the most popular products in the world!!! I'm a Android user, and was thinking of getting the Xoom but price was waaaaay to high.

posted on 28 Apr 2011, 19:55 7

8. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)

well asus seems to have learned... they are completely sold out...

posted on 29 Apr 2011, 01:15 1

27. urdaddi (Posts: 18; Member since: 27 Jun 2010)

Asus sold out because they had very little stock quantity. You cannot neccessarily compare using the basis that Asus sold out. How many units has Asus actually sold?

posted on 29 Apr 2011, 10:53 2

35. PhoneLuver (Posts: 481; Member since: 05 Jul 2010)

There is the other thing that motorola only cater for the US market. Where are the 3G models?
I would have loved to buy one, but I'm never going to buy a wifi only device!

I'm left with no other choice than to go with the iPad2!

posted on 28 Apr 2011, 20:57 1

13. Goldeneye (Posts: 419; Member since: 22 Jan 2011)

I couldn't say it better myself, I'm in the same boat, Android user, interested in it before they announce the ridiculous price, no company has a real chance against Apple in the same price range or higher, specially with an undercooked OS on tablets that is.

posted on 29 Apr 2011, 00:04 1

22. cheetah2k (Posts: 1577; Member since: 16 Jan 2011)

Even the Blackberry playbook sold 45,000 units on the first day, and continues to sell strong.

Asus sold out quick, but probably based on the dirt cheap price point.

posted on 28 Apr 2011, 18:26 3

3. jogutier (Posts: 324; Member since: 12 Feb 2010)

They need to bring that price down. It's the only thing stopping me. Maybe match iPad 2's price, I know it has a whole lot more features, but they need to stay in the price of the champ. Just saying.......

posted on 28 Apr 2011, 18:30 2

4. Gsmalltheway (Posts: 174; Member since: 15 Aug 2009)

Its too freaking expensive!!! please what is it 799.99 retail. bring it down to 450 and it might sell

posted on 28 Apr 2011, 18:50 2

5. yougotkilled1 (Posts: 167; Member since: 27 Apr 2011)

Lower down the price, then the iPad is in trouble.

posted on 28 Apr 2011, 19:56 3

9. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)

really no... honeycomb is in basically beta right now... it lags...

posted on 28 Apr 2011, 21:48 1

19. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)

why low rating... have u ever used a honeycomb tablet?... you can see a visual lag compared to the ipad 2...

posted on 29 Apr 2011, 06:57

28. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

Tip: don't fill the screen with repeated widgets

posted on 29 Apr 2011, 10:55 2

36. PhoneLuver (Posts: 481; Member since: 05 Jul 2010)

Honeycomb is a disappointment for now! It definitely has more potential, but it's just not quite there yet!

Apple may only have widgets, but they work!

posted on 29 Apr 2011, 16:52

40. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

wait... iOS has widgets?

posted on 30 Apr 2011, 01:19

45. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)

i think he meant apps... and of course you dont use a ton of widgets... i use almost none cause then it lags even more...

posted on 28 Apr 2011, 19:07 3

6. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

Yes, lower the price. Because that's how a brand new company recoups research and development and marketing costs.

posted on 28 Apr 2011, 19:58

10. remixfa (Posts: 14255; Member since: 19 Dec 2008)

moto isnt new.. they just split big moto into 2 smaller motos. and mobile moto was the profitable half. Im not sure how much R&D there was concidering the OS was made by Google, not motorola, they just put the hardware specs together n did some testing. Their big money, like the article says, was in a huge advertising campaign.

Its sad.. both devices were showstoppers at CES. I really thought at least the atrix would have been a huge seller but i guess all the initial issues really capped its knees.

posted on 28 Apr 2011, 23:57 1

21. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

Actually, Motorola Mobility only recently started being profitable again. For the longest time it was Motorola's albatross, and Motorola repeatedly sought to sell it off. Jha took a big chance with spinning Mobility off. I view this quarter as a setback, but I hope to see Jha proven right, that Mobility CAN be a successful company in its own right.

posted on 28 Apr 2011, 20:01 3

12. MorePhonesThanNeeded (unregistered)

True, but in this economy this is almost suicide. People still pay money for high priced tech, but this thing is too expensive to warrant the purchase. $800 for something that has yet to prove itself? Maybe if the economy were healthier, people wouldn't mind it, but right now. Good Luck motorola, at least their phones are priced correctly and are worth the investment. Maybe next time around Xoom2, this is a long term thing. Hope it pans out.

posted on 28 Apr 2011, 19:22 3

7. RORYREVOLUTION (Posts: 3108; Member since: 12 Jan 2010)

Yea I would have been all about buying the Xoom but I don't just have 800 dollars to throw away like it's nothing. It was really foolish of them to sell it for such a high price.

Make it 400 and it will sell.

posted on 28 Apr 2011, 19:59 2

11. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)

All tablets except for the original Galaxy Tab (now, but who wants it now?) are all overpriced. I think part of the problem is that tablets are viewed mostly as "toys" and not a sufficient replacement to our laptops. I think its just a matter of time before the tables are turned and tablets are more prevelant than a laptop but today is not that day. I paid $300 for my first gen iPad which i think is not a bad price for the 32GB model. $799 or $599 or $629, $729, $829 are prices that i'm not willing to pay for a tablet. If we are going to pick on the Xoom we gotta pick on the others as well b/c if you look at the Xoom's potential (free upgrade to 4G connectivity, 32GB onboard plus activation of the microSD/SIM slot which potentially will allow an additional 32GB or whatever the latest size of a microSD is) its the most bang for the price. iPad2 is limited to 64GB as well as limited to 3G for virtually the same cost. Apple sells so well b/c they are selling a reputation. Android feature-wise always out-does the competition but most consumers prefer reliability over features. Say what you want about Apple but they have proven their products over a period of time prior to their introduction of the iPhone/iPad and that reputation has carried them in the wireless arena.

posted on 28 Apr 2011, 21:24 1

15. Goldeneye (Posts: 419; Member since: 22 Jan 2011)

Also don't forget Apple's ease of use and smoothness of their OS, even though is already outdated, average people don't care about specs, most people want reputation, reliability, quality they can see and feel and good looks, wonder why Honda and Toyota sell so many vehicles, even when are a lot more and better options, at least spec wise, quality and reputation are key.

posted on 28 Apr 2011, 20:58 2

14. tbqwert (unregistered)

Motorola will learn just like samsung..the galaxy tab was 599 whenaunched..now its 199. Motorola should stick to phones vice tablets..they should be figuring out why the atrix on att have problems and why the droid bionic is now non existent..so what do they do in the interim. Release a droid x 2 and a droid3. You guys make apple look like number one...and im not even a fanboy

posted on 28 Apr 2011, 21:28 2

16. droiiduser (unregistered)

Say what you will about the xoom. I have one and love it. But the point is it will be getting all the google updates goodness compared to the other oem skinned tablets..

posted on 29 Apr 2011, 00:06 1

23. cheetah2k (Posts: 1577; Member since: 16 Jan 2011)

True - who knows how good Asus are in the Android game - the Asus Transformer will more than likely be stuck on the original version of Honeycomb forever.....

posted on 29 Apr 2011, 06:59 1

29. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

It got an update one day latter than the xoom, so far it looks promising, plus people trust asus more than Motorola

posted on 28 Apr 2011, 22:01

20. joey18 (Posts: 589; Member since: 20 Jul 2010)

Is over price i wast to get on stapples but i see how i cant pay more money for something is overprice then apple so mu son tell me wait for christmas and we will get ipaq 2 better resolution and display. Retina

posted on 29 Apr 2011, 10:42 3

34. WDBJ (unregistered)

What the hell are you saying? English please

posted on 29 Apr 2011, 00:12 1

24. andymp3 (Posts: 15; Member since: 07 Dec 2010)

What do you expect..Android is more of a complicated OS then IOS and the main group of consumers who are purchasing the Android devices are the technologically savvy people...So by locking the boot-loader on most of their devices and then charging an arm and a leg for the handsets, accessories and tablets they inadvertently alienated the main focus group. Most nerds are smart and not filthy rich...and once they spend their hard earned money they expect to be able to do what they want with their device... I don`t know who was in charge for the marketing and pricing however they should be fired along with the programmers responsible for motoblur....Every tech blog or website out there are complaining about the same exact thing. This has been going on way before the Atrix and Zoom had even come out.and seem to have been an issue since the Droid. How can they not have notices or taken note of what people really want? Are they just sitting there thinking that everyone else is wrong...Their great big egos will be their undoing..Even Mr. Jobs` seems to think he can`t do wrong..The recent events is proof of that. Oh Apple does not track your location...said said something like ... Google does this and the press should be focusing on them and not Apple...wow....The tech companies have to wake up..They believe they are invincible however they can fall as quickly as they came up. All it takes is one big miss hap and the bad press will take care of the rest...Sorry for the long rant..lol! I just had to get that off my chest...Cheers

posted on 29 Apr 2011, 15:18

39. Goldeneye (Posts: 419; Member since: 22 Jan 2011)

I completely agree with everthing you said, but just one little detail: the xoom doesn't come with motoblur, but you're right just about everybody hates motoblur is something that can't be explained why insist in something that is neither welcomed nor desired.

posted on 29 Apr 2011, 00:18

25. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

You know what, actually; after reviewing more objective sources on this subject, I've discovered just how misleading this article was.

Anyone who's interested should check this out instead:

http://www.marketwatch.com/story/motorola-mobility -beats-targets-with-sales-jump-2011-04-28

Motorola Mobility is doing better than expected in all fields. Even as "low" as the Xoom's sales have been, they're even better than expected.

posted on 29 Apr 2011, 00:18

26. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

Remove the space between "mobility" and the dash between it and "beats."

posted on 29 Apr 2011, 07:06

30. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

The truth is Motorola was dying, before android, they acquired a really bad reputation and people where avoiding their phones, I personalty was after the horrible expereice with the Razor my friends had, android had started helping Motorola and their sales should be bigger if they cared for international names like other companies, they should have tried investing on buying the Droid name outside US so they could sell Droids and give them some quick support and backup because they feel completely down

posted on 29 Apr 2011, 10:19

33. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

Yes, before Android Moto was dying. No, before Android Moto wasn't always putting out bad phones. Even the RAZE wasn't bad. My dad had one for three years and never experienced an issue. Their products post Razr were just boring. And sometimes when they weren't boring they were bad. (Won't forget the Rival, ever.) At Verizon's warranty center, I had to replace Motorola phones a LOT less than any other wide selling brand out there.

I think pushing for the international market would be an overreach for Motorola right now. They need to get back to profitability and solidify their U.S. efforts first.

posted on 29 Apr 2011, 11:43

37. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

my friends experiencing with the raze was horrible.... it had a 3 month time before issues popped out, and it was either the battery being super inaccurate or the screen not working on like 4-5 devices it was a pain for them.... but it could also be me overreacting since I've disliked dumb phones

posted on 29 Apr 2011, 17:20

41. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

Okay, so your friend happened to get a defective Razr, at which point I'm assuming he got replacements from warranty department. Which explains everything, because warranty replacements are worthless refurbs. I don't think you're overreacting; once someone got into the warranty cycle they usually had to get used to getting their phone replaced as often as once a month.

posted on 29 Apr 2011, 19:30

43. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

I meant 4-5 friends got around 4-5 devices with their warranty and they kept breaking :( but if waranty gives them a refub then that explains much of the issue

posted on 29 Apr 2011, 07:19 1

31. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

I will never get tired of telling moto where they failed and why that number is not bigger, and I will explain this for the last time, I hope, and I hope some ninjas are here to tell moto this

-No wifi version from the beginning. the truth is not everyone wants a new contract for a device they can use their phone to get conection

-No 16gb version. when people compare the XOOM its compared expansive compared with the cheaper iPad witch has less memory.

-No one knew how much it was going to cost. seriously everyone tried telling the sale price and the release date for their devices except for them.

-they never really cleared the confusion with the price tag. some people believe the 3G version is the only version and the price tag it not favourable.

-Verizon only release at first.

-Having to return the dam thing to get LTE

-No SD card support and may other things make it look like a beta product

-commercials never really showed a tablet in action but rather a list of specks that only few people can read

In my opinion they wanted to get ahead of iPad2 release date and ended up making so many mistakes, the Atrix also has so many errors from marketing and sales department, this devices could have sold at least 50% more if Motorola had tried to get its reputation bad

posted on 29 Apr 2011, 10:13 2

32. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

You forgot to add in bungled sales support by Best Buy and others in heavy favor of the iPad.

posted on 29 Apr 2011, 11:44

38. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

but this may help Motorola learn who his friends are

posted on 29 Apr 2011, 17:23 1

42. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

Unfortunately, that seems to be a very short list right now. Apple is able to twist everyone's arms to get top billing on websites and in stores. They also have a top notch marketing team. Motorola has been good, but they need to be more aggressive when working out distribution deals.

posted on 29 Apr 2011, 19:36

44. protozeloz (Posts: 5396; Member since: 16 Sep 2010)

Motorola needs a better marketing department

posted on 04 Aug 2011, 22:44

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posted on 16 Aug 2011, 01:24

49. labeChave (unregistered)

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