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Motorola Mobility's CEO explains the $800 price tag for the Motorola XOOM

Posted: , by Alan F.

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Motorola Mobility's CEO explains the $800 price tag for the Motorola XOOM
Ever since we reported that the Motorola XOOM would cost $799.99 for an unsubsidized model, and $600 for a Wi-Fi only version, you have been wondering why the 3G version will cost you 8 Benjamins. Well, who better to explain the XOOM's pricing than Motorola Mobility's CEO Sanjay Jha.

According to Jha, pricing the XOOM $70 more than the Apple iPad with the same amount of storage is ok because, "We felt that our ability to deliver 50Mbps 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."

Another interesting note is that those who purchase the 3G model will need to pay for at least one month of 3G service in order to unlock WiFi connectivity. That will bring the price of Motorola's 3G tablet about $100 higher than the cost of a similarly spec'd iPad. Jha also noted that the Motorola XOOM will be upgradeable to Verizon's 4G pipelines which should be worth paying a premium price to Apple's 3G tablet.

The executive did have some worries about the tablet business as a whole, calling Samsung's problems selling the Galaxy Tab and the large number of returns that the Korean based firm suffered something to be concerned about.

source: WSJ

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posted on 17 Feb 2011, 17:32 2

1. ribbonsalmark (Posts: 84; Member since: 06 Jan 2011)

Ummm 50 mbps is impressive but can you tell the difference in wait a extra second is worth $100.

posted on 17 Feb 2011, 19:22 3

2. hawk62 (Posts: 320; Member since: 21 Nov 2009)

If this was Jobs, you guys would be over him for overcharging. Lets see if you jump on moto for overcharging.

My guess is he is guessing at the ipad 2 price tag. But for $800 you could get one hell of a laptop and a 3g/4g card

posted on 17 Feb 2011, 20:08 1

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

Here's the difference, Hawk: the XOOM is half a year ahead of the current iPad in technology, and can be upgraded to 4G for free. So unlike the iPhone or iPad, it won't be rendered obsolete quite so quickly. So in my view Mhz is offering a fair price for such a nice device.

posted on 17 Feb 2011, 20:23 2

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

well if you consider a device that compared with the current (and maybe the future) IPad I have to say that for 70 extra dollars you get

-will be uprated for a faster data speed at no cost to you
-has 2 times the whose power
-has more ram
-has two good cameras
-has a better resolution
-will probably get play station approved games

now again with that logic? guess what? with 800 I get the Hell of a PC too, now how many actually take their laptops outside? lemme remind people that not so long ago these where the specs of a laptop and look how well they are standing now... now i think tablets didn't come to take a laptops place... i think they are here to kill the netbooks...

posted on 17 Feb 2011, 20:21 1

4. TKFox007 (Posts: 303; Member since: 02 Nov 2010)

It probably only costs $80 in parts and labor.

posted on 17 Feb 2011, 20:48

6. phoneguru173 (Posts: 54; Member since: 09 Apr 2008)

I was considering this as more portable option/lapton replacement, but for $800 I can get a nicely loade3d, very light-weight laptop. Does Moto want to be competitive, or BEAT out the competition by coming in at a lower price point?!

posted on 17 Feb 2011, 20:52

7. RORYREVOLUTION (Posts: 3117; Member since: 12 Jan 2010)

I think the price is fair, considering the specs and how much shelf life this thing will have. Unlike the iPad where they will bring in a new generation each year just to slightly improve the specs. This thing has it all. I will be getting this baby when I get my taxes back.

posted on 18 Feb 2011, 00:11

8. box (unregistered)

Love the B.S. sting at Samsung about device returns for the Tab. Use facts next time, not bias!

posted on 18 Feb 2011, 00:42

9. yomma (unregistered)

Come on 800 is a lot.. heck you can get an alienware m11x for that price and a lot better..and wifi is like everywhere.. I see Starbucks like on every street I go to and other based hotspots.

posted on 18 Feb 2011, 01:47

10. sam_tek (Posts: 105; Member since: 18 Feb 2011)

i think the 3g one's still expensive. Moreover, comparing apple products in the price angle really shouldn't give em any due credibility!

I do like the wifi price however

posted on 18 Feb 2011, 02:10

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

Wow those tablets are just getting ridiculous with their price tags, but looks that there are enough stupid people buying them just to look cool, I mean how in the world they wanna compete against Apple in the tablets market with those stupid prices, all they're doing is make Apple look better every time a new tablet is launched, Steve must be laughing his ass off, seriously!

posted on 18 Feb 2011, 07:20

12. msa1988 (Posts: 418; Member since: 30 Mar 2010)

I'd rather build my own touch screen laptop / desktop than pay this much for a table.

posted on 18 Feb 2011, 12:09 1

13. clifford ahn (unregistered)

why is people comparing laptop to tablets. lets get everything straight over here. tablets such as xoom, galaxy, and ipad are not really competiting against laptop because that will be crazy, and pretty sure and obvious who is going to win that . I would say it is more of an alternative portable device since the tablet is starting to build their own market there is no need to compete against laptops. Against netbook a whole another story because in my opinion netbooks should never have existed in the first place because you can't really do much of anything with them except the alienware m11 thats another story. My main point is that a tablet can be an alternative for a laptop but it is mainly a portable eletronical device that has its own OS. the tablet is going to get expensive reason being is because the companies are putting the most modern technology out there into these tablets and at the same time the company is trying to put a reasonable price on them as well. Some people should consider being in there shoes on every decision they make then maybe people might think differently but then again putting up opinion is a good thing to do .

hope you like this entry

posted on 18 Feb 2011, 14:58

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

wow some common scene! finally!

now to those who brag about laptops? and actually use the portable feature

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