Motorola to halt production of XOOM tablet after June?

Motorola to halt production of XOOM tablet after June?
Attributing the story to anonymous sources, DigiTimes reported today that Motorola is planning to slow down production of the XOOM tablet with a goal of halting production after June. According to the report, the manufacturer shipped 700,000 to 800,000 units in Q1, meeting forecasts. This month should see 400,000 to 500,000 tablets made, slowing down to 300,000 next month and dropping even further in May before coming to a stop at the end of June.

The big question is, why would the Schaumburg based firm stop production just a few months after launching the first Honeycomb flavored tablet? One theory is that the company is taking a breather to see how the XOOM is accepted in the market, which is being overwhelmed by the number of tablets being produced. All of the major smartphone manufacturers have a tablet out or on the way.

Another possibility is that a Motorola XOOM 2 will replace the original model. This is the most likely reason for the drop off in production of the original XOOM, but so far there has not been any word about a sequel. It would seem strange for Motorola to completely stop producing a product that according to the paper, will have shipments of 3 to 5 million units in 2011.

source: DigiTimes

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23 Comments

1. rickbubello

Posts: 10; Member since: Mar 05, 2010

I highly doubt that they would stop production, yet another article phonearena pulls out of its ass to make itself sound relevant

2. Honeycomb_FTW unregistered

While I think the origins of this article are highly suspect I would not be surprised to see Motorola release a "Xoom 2" around August supporting the new quad-core Tegra 3 chips.

4. Thump3rDX17

Posts: 2160; Member since: May 10, 2010

i didn't even see your comment before i made mine, great minds thinking alike over here. xD

6. protozeloz

Posts: 5396; Member since: Sep 16, 2010

That would make sense

11. cheetah2k

Posts: 2256; Member since: Jan 16, 2011

I think it would be highly unlikely to see quad core CPU's available in August, considering Nvidia have only speculated a release of the SOC's in August. It would be more like Nov-Dec 2012 before any quad core products make it to the shelves. In any case, if Moto does halt production of the Xoom in order to change their assembly lines to fab Xoom II's, then they will have ample stock to get them through the production change over period.

21. Honeycomb_FTW unregistered

NVIDIA stated at MWC during the Tegra 3 preview that tablets with the Tegra 3 chip would hit the market in August with phones fallowing sometime around the holiday season. ;)

3. Thump3rDX17

Posts: 2160; Member since: May 10, 2010

if the rumors are true about the Targa packing a quad core processor then i'm sure Moto will want to put out a tablet with it as soon as the Targa.

5. Sniggly

Posts: 7305; Member since: Dec 05, 2009

It might be a combo of wanting to put out a new device soon and slower than hoped sales. And I can guarantee that the way it's been marketed has killed sales. Online the XOOM is relegated to a relatively anonymous place on Verizon's site. If you go into Best Buy the XOOM is shoved off into the netbook pile without any major signage. It's not even with the other tablets. Sales reps don't mention it, they dismiss it when it is mentioned. Except some who sigh with frustration and agree that the XOOM is getting the short end of the stick. And at the same time Apple has their douchey little endcap for the iPad 2.

7. Danny351 unregistered

True. In Salisbury, MD the Xoom was in the back of one of the shelves. Only reason I found it because I actually walked around in the store isle by isle looking for it. The ipad is on the front on its own end-shelf with large logos and a damn jazzband. Also the Xoom was brand new and already looked like someone stepped on it and spilled something on it a couple times. Can't really understand how Motorola can let this happen. Of course I would never buy from BB anyway since they are ignorant, lazy and they double price most stuff - at least at this location - but I will get a Wifi only Xoom on day one when Sam's Club brings it over.

8. Sniggly

Posts: 7305; Member since: Dec 05, 2009

It would be ironic if Sam's Club treated the XOOM better than Best Buy did. The trouble is that besides Verizon direct and any of their third party dealers, Best Buy is the only major entity actually selling it. And if THEY treat it like that, no WONDER it's not selling like it should. I only found the XOOM because I asked an employee in the mobile department where it was. The computer department guy was just sitting on a stool at his station staring off into space. He only looked over when I twitched and set off the theft alarm (there was a VERY short cord connecting it to the base) and acted very bored when he walked over. I asked him why the XOOM was in such a horrible location, and he snidely replied "Because the XOOM doesn't have people lining up around the block to buy it." I was in shock. Here I am, a customer who could potentially BUY the device, and he's bashing the product I'm possibly interested in buying. When I started questioning him on why the iPad 2 was better and countered his (very shallow) reasons for being an Apple lover, he got very stammery, and I took pity on him and let him retreat to his post. I talked to another guy, a manager this time, who leaned more toward Android. He said that they're holding off on doing anything major with the XOOM until more representatives get through training with it. I hope that's all it is. Otherwise the XOOM will never get proper representation.

10. davecann2

Posts: 460; Member since: Mar 15, 2011

As I stated several times in other posts.... 1. XOOM will launcg a WiFi only model. (Check) 2. XOOM will announce a price cut to compete with IPAD2. (Check) 3. XOOM will have to reduce production due to low demand. (Check) XOOM will now go the way of the original Samsung, and soon to be, Galaxy tab.

13. davecann2

Posts: 460; Member since: Mar 15, 2011

Just read a rumor that Motorola might be gearing up to launch the XOOM 2 in the second half of the year. To me this is a sign of failure of the original XOOM. Why the need to get an updated version out so fast? - Is it because Moto is a bit worried of losing momentum due to the iPad 2? - Do they only care about making money and not about the 2 or three customers that bought the original? And just for the record... I do not own an apple product or an android OS product. My opinion is semi-non-bias.

16. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Why was the Droid 2 released less than a year after the original Droid? Because there were minor gripes about the Droid, and Motorola addressed those gripes. Also, a fresh product launch may give them an opportunity to fix the bungled marketing for the first XOOM. It was launched too close to the release of the iPad 2.

24. taco50

Posts: 5506; Member since: Oct 08, 2009

There was actually a lot of gripes about the original droid. Man up and admit that original droid was not a great phone.

26. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Um, it was an incredible phone. It was well made, it was fast for its time, it had a great amount of memory, and it brought Android to the masses. There were minor complaints about the design; the Droid 2 addressed them. Other than that, and the occasional failure (no more or less than the iPhone failure rate) there wasn't anything wrong with it, Taco.

14. zuno gyakusatsu

Posts: 257; Member since: Mar 16, 2010

maybe motorola is getting the hint with the high number of returns on the already less than stellar amount of sales. hahahaha

23. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Zuno, you can shut your gov now. You're not contributing anything useful. And you took a play out of Gemini's playbook with the thumb votes.

25. taco50

Posts: 5506; Member since: Oct 08, 2009

You sure talk a lot of crap about Apple but can't take it when someone states a fact about the Xoom. It's not doing well in sales anyway you slice it.

27. Sniggly

Posts: 7305; Member since: Dec 05, 2009

I know it's not doing so well in sales. But high amount of returns? Where is that return?

28. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Where is that report*?

17. plint6 unregistered

figures tells the truth. i've nothing against any manufacturer, just in case. i am a big admirer of innovative progress which currently occurs. if a consumer argue about price of a product, apparently it is not worth it to him or her. kind of a shame for what supposed to be a great product.

22. Honeycomb_FTW unregistered

Motorola has stated that this rumor is bogus and they have no plans of reducing orders or stopping production past the second quarter. . . We also won't have a clue how well the Xoom sells till the WiFi is out on the market for a month or so. That's not to say they don't have other tablet designs they are working on ;)

29. wilfredo natal unregistered

bring xoom 2 as soon as possible.

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