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Motorola XOOM priced at $800

engadget.com

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Re: Motorola XOOM priced at $800

#21

Post by netcan »

thatoneguy wrote: post #18
netcan wrote: post #16

Earlier quoted context omitted.

Must be more to it than that. If it was possible to get a good tablet (of any size) to consumers cheaper than Apple, someone would have. Maybe this project started out with your assumptions and ended up with (possibly unsellable) $800 device.

AFAIK, Apple's supply chain is not only legendary, but they'll commit huge amounts of capital to new hardware products in advance. This allows them to more or less own the output of a given supplier's factory, forcing other companies to pay spot prices for their follow-on products.

I'm sure stuff like that play a part.

But, iphones have been out for a while. Long enough for new factories to be set up, old factories to increase capacity, contracts to run out... Should be long enough for things to catch up. Why are iphone's best competitors still about the same price or more?

Re: Motorola XOOM priced at $800

#22

Post by nazgulnarsil »

i think a big question is how much is B&N losing on each nook color sale? 7 inch IPS panel with a decent processor.

10 inch tabets over $300 don't make any sense to me. archos 70 and 101 seem like the only sane products for the casual computing market that doesnt already have an ipad.

Re: Motorola XOOM priced at $800

#23

Post by dkarl »

netcan wrote: post #15

I think the products that compete with iphones and ipads point to a fundamental shift in how Apple do things these days: Apple now compete on price. I'm not saying they've given up on their high margins on everything policy. Like other commenters have said, they probably use purchasing power to make up the difference, but they are using price nonetheless. We're so used to Apple being the premium option that we keep o…

I think what we're seeing is that Apple always did compete on price. We just didn't know it until we saw competitors trying and failing to match their prices.

Re: Motorola XOOM priced at $800

#24

Post by kvdr »

necubi wrote: post #2

This seems pretty crazy, as the comparable iPad (16GB WiFi+3G) retails for $630. It will also be difficult to build up a large install base without a cheaper, wifi-only model. And while at the moment the Xoom has some features the iPad does not (cameras, for example) the inevitable release of a new iPad in a couple months will no doubt erase that advantage, at the same (or lower, per GB) price. I can't imagine what M…

Everybody is getting hung up on the price of this device, which I admit is high, but a comparison to the iPad's price is not fair. As stated below, the closest iPad is $730. Also the hardware is a generation and a half ahead of the iPad. The iPad doesn't even have a camera, very basic need for any kind of video conferencing (Xoom comes with 2). Please see the comparison chart [1] for more details.

But yeah, having to buy the Xoom from a carrier and paying atleast one month of data plan rate before cancelling it is kinda ridiculous.

[1] http://static.skattertech.com/media/2011/02/infographic-play...

Re: Motorola XOOM priced at $800

#25

Post by michaelbuckbee »

jsz0 wrote: post #14

This is the practical downside of being too cozy with carriers. A cheaper wifi-only model would be great for consumers but cuts the carriers out of the loop entirely. Probably the same reason there's no 'iPod Touch killer' out there yet. All these companies are in the business of selling equipment to carriers. What the consumer wants is a secondary consideration at best.

This is a huge frustration to me as a developer, I wish I could buy an iPod touch style android device.

Re: Motorola XOOM priced at $800

#26

Post by protomyth »

netcan wrote: post #21
thatoneguy wrote: post #18

Earlier quoted context omitted.

AFAIK, Apple's supply chain is not only legendary, but they'll commit huge amounts of capital to new hardware products in advance. This allows them to more or less own the output of a given supplier's factory, forcing other companies to pay spot prices for their follow-on products.

I'm sure stuff like that play a part. But, iphones have been out for a while. Long enough for new factories to be set up, old factories to increase capacity, contracts to run out... Should be long enough for things to catch up. Why are iphone's best competitors still about the same price or more?

Logistics isn't just the factories. Buying power, relationships, knowledge, and engineer / material expertise are all factors. Having your own retail chain doesn't hurt either (so you don't have to agree to no cell contract = no WiFi nonsense). Motorola doesn't have the combo.

Re: Motorola XOOM priced at $800

#27

Post by EwanG »

I suppose now would be a bad time to mention Viewsonic's G-Tablet which has a Tegra 2 chip (just like the XOOM), a 10" display (not quite as nice as the XOOM's), and 16 gigs of RAM for a bit under $400? :-)

Re: Motorola XOOM priced at $800

#28

Post by uytrhyujkujhy »

protomyth wrote: post #19
natnat wrote: post #13

I really don't understand this at all. According to iSuppli[1], Apple pays $229.35 in parts and labor to make the low-end iPad. They develop their own operating system, buy incredible amounts of ads, and yet they still have massive profit margins selling iPads for $500. Meanwhile, Motorola and Samsung and other manufacturers get a free operating system and get cellphone carriers to give them a bunch of money to sell…

I am pretty sur iSuppli's numbers are not accurate. Apple has the money to buy in quantity that Mortorola cannot match. I also think that Apple's COO has overseen the building of a world-class supply chain. Plus having a successful retail chain that can feature your product is a huge advantage. The iPod experience shoul show that price is not going to be an easy thing to beat Apple in for consumer electronics.

So apple can buy the CPU for it's iPad from Samsung for less than Samsung can????

Re: Motorola XOOM priced at $800

#29

Post by r00fus »

necubi wrote: post #2

This seems pretty crazy, as the comparable iPad (16GB WiFi+3G) retails for $630. It will also be difficult to build up a large install base without a cheaper, wifi-only model. And while at the moment the Xoom has some features the iPad does not (cameras, for example) the inevitable release of a new iPad in a couple months will no doubt erase that advantage, at the same (or lower, per GB) price. I can't imagine what M…

What about I don't want to pay for 3G, and don't want it? Xoom is not an option... I already pay for a mobile data account (with tethering)... why pay for another account?

Furthermore, iPad 3G requires no contract.

No, there is no real iPad competitor yet.

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