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

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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1. John unregistered

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

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.

8. Lucas777

Posts: 2137; Member since: Jan 06, 2011

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

27. urdaddi

Posts: 18; Member since: Jun 27, 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?

35. PhoneLuver

Posts: 481; Member since: Jul 05, 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!

13. Goldeneye

Posts: 419; Member since: Jan 22, 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.

22. cheetah2k

Posts: 2213; Member since: Jan 16, 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.

3. jogutier

Posts: 324; Member since: Feb 12, 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.......

4. Gsmalltheway

Posts: 275; Member since: Aug 15, 2009

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

5. yougotkilled1

Posts: 167; Member since: Apr 27, 2011

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

9. Lucas777

Posts: 2137; Member since: Jan 06, 2011

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

19. Lucas777

Posts: 2137; Member since: Jan 06, 2011

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

28. protozeloz

Posts: 5396; Member since: Sep 16, 2010

Tip: don't fill the screen with repeated widgets

36. PhoneLuver

Posts: 481; Member since: Jul 05, 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!

40. protozeloz

Posts: 5396; Member since: Sep 16, 2010

wait... iOS has widgets?

45. Lucas777

Posts: 2137; Member since: Jan 06, 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...

6. Sniggly

Posts: 7305; Member since: Dec 05, 2009

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

10. remixfa

Posts: 14605; Member since: Dec 19, 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.

21. Sniggly

Posts: 7305; Member since: Dec 05, 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.

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.


Posts: 3131; Member since: Jan 12, 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.

11. CRICKETownz

Posts: 980; Member since: Oct 24, 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.

15. Goldeneye

Posts: 419; Member since: Jan 22, 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.

14. tbqwert unregistered

Motorola will learn just like samsung..the galaxy tab was 599 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 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

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..

23. cheetah2k

Posts: 2213; Member since: Jan 16, 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.....

29. protozeloz

Posts: 5396; Member since: Sep 16, 2010

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

20. joey18

Posts: 664; Member since: Jul 20, 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

34. WDBJ unregistered

What the hell are you saying? English please

24. andymp3

Posts: 15; Member since: Dec 07, 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 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! I just had to get that off my chest...Cheers

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