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Motorola Xoom: Already closing the iPad pricing gap?

A Wi-Fi only Motorola Xoom is rumored to be coming to Sam's Club at $539.99, a price tag that would put it in the ballpark of Apple's Wi-Fi only iPad 2.
Written by Larry Dignan, Contributor

A Wi-Fi only Motorola Xoom is rumored to be coming to Sam's Club at $539.99, a price tag that would put it in the ballpark of Apple's Wi-Fi only iPad 2.

Droid Life highlights some pictures from an end-cap at Sam's Club with the $539 price. Consider these prices rumors at this point. If you factor in that Motorola puts 32GB of memory into the Xoom many consumers may note that distinction and call the comparison with Apple's 16GB Wi-Fi iPad a wash.

If consumers consider the Xoom at Sam's Club to match the Wi-Fi iPad on price then it comes down to features. I'd argue that the Xoom would still fall short on that front. Consumers generally go for the known commodity (iPad) over the unknown (Xoom).

I've taken some heat for noting the Xoom has to come down in price. The argument from readers is that the pricing is on bar given Xoom's performance specs and memory. But for the average consumer at Best Buy, price is going to be the differentiator. Among the ZDNet readership, the Xoom has a slight lead.

The promising point is that Xoom prices may be adjusting. Motorola Mobility probably still needs to hit the $399 mark for Wi-Fi to truly dent the iPad. At the very least, Xoom pricing is headed in the right direction. Rest assured that Android tablets prices are going to come down in a hurry.

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