$800?
And if you read the subtext of the picture carefully, it says, "To activate WiFi functionality on this device, a minimum of 1 month data subscription is required."
My god, is it rude to just point and laugh?
Motorola XOOM priced at $800
31–40 of 91 posts
Re: Motorola XOOM priced at $800
#32Earlier quoted context omitted.
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????
I doubt Samsung is that screwed up but I do know one company where outside vendors got a better price then one of their own divisions. The CPU is not the only component.
Re: Motorola XOOM priced at $800
#33This 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…
While you are all technically right that the iPad 32GB/wifi+3g is comparable to the Xoom, it isn't in the mind of consumers. Consumers will compare $500 v. $800. After all, Apple's $1500 laptop is not spec-wise comparable to a $500 Windows laptop but that doesn't make a difference. I am betting on Apple releasing a $300 iPad in April.
Re: Motorola XOOM priced at $800
#34... and you have to purchase a data plan before you can use WiFi. The iPad is still the only tablet in the history of personal computing that makes any sense.
Motorola seems to have two big problems: price and distribution. I think this illustrates Apple's buying power for components and the pricing that results. The second is going to be a bigger problem. Having to cripple your device (tying WiFi to cell service) because you best distribution is through the cell carier is going to be painful. They need to find a channel that allows them the ability that sells a WiFi model…
Distribution is a huge advantage for Apple. Motorola, RIM and most of the cell manufacturers have no experience selling away from the carrier. HP knows how and Samsung knows how but Samsung's tablets are developed and sold through its smartphone division, which doesn't sell outside of the carriers.
Re: Motorola XOOM priced at $800
#35Earlier quoted context omitted.
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????
Actually, this is correct. In many electronics companies the divisions internally can operate as profit centers, wherein they are incentivized by making the largest profits for themselves. If Apple can offer more for flash to the Samsung flash division than the phone division at Samsung, then business goes to Apple.
The numbers check out.
Related readings
"Using transfer pricing in decision making - Nuts and Bolts of Business": http://bit.ly/f0xBb0
Managerial Accounting Transfer Pricing Lecture Notes, UIC: http://bit.ly/fhaoUM
Re: Motorola XOOM priced at $800
#36I 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…
Manufacturing cost is ALL about the volume. You can make a device cost half as much if you buy 10x the volume, and half as much again for 100x
Re: Motorola XOOM priced at $800
#37Earlier 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.
Instead of trying to copy Apple's products, their competitors should really be looking at how to replicate their marketing and supply-side management.
Re: Motorola XOOM priced at $800
#38I 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…
To amplify this point, remember that when the iPod was first released, it was relatively expensive at $399 for the 5 GB model. Today they have entries at every price point, starting from the $49 iPod Shuffle up to the $399 64 GB iPod Touch.
Apple definitely can and will compete on price.
Re: Motorola XOOM priced at $800
#39This 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…
While you are all technically right that the iPad 32GB/wifi+3g is comparable to the Xoom, it isn't in the mind of consumers. Consumers will compare $500 v. $800. After all, Apple's $1500 laptop is not spec-wise comparable to a $500 Windows laptop but that doesn't make a difference. I am betting on Apple releasing a $300 iPad in April.
Exactly. The problem isn't the price to features ratio, its the "lowest priced version" option. And somehow, its Apple that's offering the most choice there.
Re: Motorola XOOM priced at $800
#40This 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…
To be fair, it has 32 gigs of internal storage, so comparing it against the ipad with half the storage isn't quite apples to apples (no pun intended.) It would be more fair to compare it with the $730 32gb w/ 3g ipad. When you could that with a higher resolution screen, dual cameras, /and/ a built in barometer, Id say its a near even deal ( http://goo.gl/OYVrd for a full comparison chart). That being said - its still…
"When you could that with a higher resolution screen, dual cameras, /and/ a built in barometer, Id say its a near even deal"
Remember though that the Xoom will spend most of its life competing against the second generation iPad, so most of these feature advantages are likely to vanish. Throw onto that the fact that judging from Apple's pricing history the next iPad will either have the same or a lower price, _and_ the Xoom will require a cellular contract to use Wifi (!), the Xoom will likely compare poorly to most people.