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Topic: Apple

Has the Apple's reality distortion field spread too far? Motorola Xoom price is reasonable

Summary: Leaks from Best Buy this weekend show that the Motorola Xoom may have a full non-subsidized price of $699. This is less than comparable iPads, yet the Internet is alive with people complaining the price is too high even with a much more powerful device.

Matthew Miller

By for The Mobile Gadgeteer |

This weekend I read an Engadget post that had some leaked Best Buy pricing and availability info for the upcoming Motorola XOOM Android 3.0 (Honeycomb) tablet. I then read a ton of Tweets coming across the wire where people were all spun up about the possible $699.99 full retail, non-subsidized price. While this may sound high, it is less than 32GB and 64GB Apple iPad 3G models (most comparable ones) and even less than the non-subsidized Verizon iPhone 32GB model. Has the Apple reality distortion field swept over people that much where they cannot even make fair pricing comparisons?

To do a fair pricing comparison I think you need to look at the specs, as well as the features and UI. The Xoom has a 10.1 inch display, dual-core Tegra 2 processor, 1GB RAM, dual cameras, and much more. Check out the Droid Life comparison chart to see how many specs of the Xoom beat the iPad.

Now we all know specs and features don't define the best device, as we can see with something like the Nokia N8 that blows away most every other available smartphone today with specs and still can't appeal to North American buyers. The iPad does have an appealing UI, but Android is quite good too and the videos we have seen with Honeycomb show it can hold its own. James Kendrick posted some thoughts and a video of the Xoom.

Apple has always had a premium price on their gear and as Joel pointed out in the Verizon iPhone fine print an unsubsidized Verizon iPhone will cost you $649.99 for the 16GB model and $749.99 for the 32GB model. The subsidized price will likely be the same as AT&T at $299 and $399. The subsidized Motorola Xoom on Verizon will probably be something like $499, which then makes it cheaper than even the lowest priced WiFi-only iPad with the lowest available memory. Apple doesn't sell the iPads with subsidies, but people in the US rarely buy products from carriers without these so why are people getting spun up about the non-subsidized Xoom price?

Topics: Apple, Browser, iPad, Mobility, Software Development, Tablets, Verizon

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64 comments
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  • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

    I initially thought, "these android community cheapskates want quality, but don't want to pay for it." Well I still feel that way, but I also think that if there was a WiFi-only version released at the same time, as a lower cost non-contract option, it would go a ways toward easing some of the sticker shock.

    Then again, I'm constantly reading comments on various android sites from people demanding a 32GB dual-core 10" xoom for no more than $400. Anyone looking for that must also have a perpetual motion machine, a flux capacitor, and a white iphone. Get real :)
    superchunkfunk
    Reply Vote

  • That price point is as big of an insult as the Samsung Galaxy Tab

    Motorola and Verizon are crazy. An Ipad only costs about $290-$350 (Wifi vs 64gb 3G model) to build and I can't imagine that these things are much more expensive to build. You would think they could build them cheaper since they took so much time planning the product. The Ipad has a premium because it is Apple, ground breaking and has no iOS competition. The Xoom has about 5 major competitors and 70 minor competitors that will exist in the next 6 month. I was very seriously considering one of these but its price point should be closer to the $400 to $500 range. I wish Motorola the best. I guess I am now waiting for the Acer Iconia A500. Apparently Verizon and Motorola have no desire to gain market share from Apple. After years as a customer I am probably headed for a Verizon competitor also. Truely dissappointing. These units are no where close in price to a reasonable profit margin. I am not an Apple fan but it seems like I may become one.
    BDA123
    Reply Vote

    • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

      @BDA123
      What you may not know, however, is that Apple probably gets much better pricing on a lot of components, especially flash memory, because they have a lot of cash and they can buy them up front and lock in prices for the length of the manufacturing cycle. It's not apples to apples (pardon the pun) when it comes to component pricing. Apple is the 800-pound gorilla because they have cash and cash is king. Unfair? Maybe. But Apple worked hard to put itself in this position. It's business.
      Blad_Rnr
      Reply Vote

  • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

    It's $30 less than the iPad WiFi + 3G (32GB).<br>The AT&T iPhone is $449 (8GB), $599 (16GB), or $699 (32GB) per the fine print on Apple's site (<a href="http://store.apple.com/us/browse/home/shop_iphone/family/iphone" target="_blank" rel="nofollow">http://store.apple.com/us/browse/home/shop_iphone/family/iphone</a>). It's the exact same phone as the Verizon version, so I don't understand why they're charging more.
    PolarBearTC
    Reply Vote

    • iPad through Verizon

      @PolarBearTC
      Verizon's iPad also comes with a MiFi portable hotspot unit. That hardware is the reason for the increased price of the iPad on Verizon.
      use_what_works_4_U
      Reply Vote

      • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

        @macadam I was referring to the iPhone. The iPhone 4 on Verizon is $50 more when unsubsidized, which makes no sense because you're not getting anything more. For that, you could get a decent case, or an accessory (not everyone buys phones with a subsidy, or even qualify for one)
        PolarBearTC
        Reply Vote

  • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

    And you are good at spreading things thinly - a little bullshit goes a long way in your hands
    ccoomar
    Reply Vote

    • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

      "Check out the Droid Life comparison chart to see how many specs of the Xoom beat the iPad."

      Wow, really? It has better specs than a device that came to market a year ago? Amazing! MAGICAL! With this kind of rapid innovation, Android will have no trouble winning this fight.
      2drinks
      Reply Vote

      • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

        @2drinks <br>LoL!!!<br><br>THAT is exactly how I feel!!!<br><br>BTW... There are two... sorry... THREE Apple iPads cheaper than $699!!!<br><br>Matthew Miller (M&M)... I know classify you as a full biased iHater geek!
        Bay Area CA Male
        Reply Vote

  • Choice???

    You Android clowns are all about choice, that is until you don't have one.
    Delvardo
    Reply Vote

    • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

      @Delvardo android #1 choice not stock with one single device a big ipod!
      TRDRACER21
      Reply Vote

      • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

        @TRDRACER21
        A little off subject but... I dont get how people can still claim thsi "Android is open" nonsense!!!

        Didnt google give exclusivity to Motorolla for honeycomb????
        So exactly how is this truely open now?....
        Bay Area CA Male
        Reply Vote

  • Well, still no reason that we can not hit netbook prices for a WiFi only

    model without contract.
    DonnieBoy
    Reply Vote

  • iPad ASP (incl. Wifi models) is $645

    Apple tells us the average sales price for an iPad across all models is something like $645. (I don't know if that changed in the most recent earnings report.) So $700 for a state-of-the-art competitor is not out of line. One problem for Moto (as it has been for Samsung) is the current iPad is perceived to cost $499 even if that's not the actual price people pay. (Apple is a retail genius.)

    Another significant issue is that from what we know about the Apple playbook it's quite possible one of the features of an iPad 2 may be a significant price drop. In that case even if Motorola beats Apple on every feature point, Motorola will need to come back with a much lower margin price or a stripped down model.
    rlawler
    Reply Vote

    • asp

      @rlawler
      ipad asp was around $600 for the last quarter according to their quarterly results.
      banned from zdnet
      Reply Vote

      • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

        @banned from zdnet
        This "another" Apple copycat will have the same fate as the Samsung Tab... Will do Ok but still allow Apple to enjoy 70-90 % of the market!
        Bay Area CA Male
        Reply Vote

    • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

      @rlawler
      LoL!!!! HA HA HA HA HA HA HA HA!!!!!!! LoL! lol

      State-of-the-art???????

      Dont you mean, copied as much as possible from apple, slightly improved specs after 13 months and still have not officially released anything yet-ART?

      Its likely the iPad 2 will come out before this, another android brick!
      Bay Area CA Male
      Reply Vote

      • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

        @Bay Area CA Male

        Do you mean, you're just a pathetic troll, and should be ignored?

        Now go back to your cave.
        spacespeed
        Reply Vote

      • Copied?

        @Bay Area CA Male

        It has a different OS, more RAM, more inputs, 4G capability, larger screen, more resolution...those aren't "slightly" improved specs...they're huge.

        And, by the way, Apple didn't invent "thin" and "flat".
        Cyberslammer3
        Reply Vote

      • RE: Has the Apple RDF spread too far? Motorola Xoom price is reasonable

        @Bay Area CA Male Crap eating idiot. you can't even see that the increase in specs is at least 3 times better than ipad and counting that it has an OS with flash support where you can PROPERLY SURF THE WEB and isnt just a glorified kindle with touch screen and games
        kazshizka
        Reply Vote
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