Motorola is coming out with a new model of their Xoom tablet computer. The major difference is that the new model will feature Wi-Fi only, 32GB of memory and priced at $599. This price is the exact same price that Apple is charging for their Wi-Fi only 32GB model. But will trying to match Apple on price be enough? Or will Motorola need to make more price cuts?
As some one stated in a comment recently, there is always one company that sets the standard, that others try to emulate. Apple has set the bar very high, and consumers seem to agree that Apple is currently number one, top dog, big cheese and any other platitude one can use to describe success.
I have tried the Motorola Xoom model with the $800 price tag and it is a sweet device. I really like the Xoom, but was overwhelmed by the price. At the time I tested the Xoom the $800 model was the only model available. But now Motorola has a more competitive model using Wi-Fi and with 32GB memory. The new Xoom will also come with Google’s Android Honeycomb operating system. This unit should fare better in sales than the $800 model did. One would hope that Motorola would also offer the same Wi-Fi unit with 16GB for $499 and really compete with other Apple iPads with the same specifications.
So what is going to determine which tablet will be the market leader? I believe that there will be two main issues. The first is going to be price. The company that has the best product will matter, but the company must be price competitive. Second will be performance. I wrote a piece about some rather inexpensive tablets that have been tested by others, and have fallen down on performance, even when priced right. The winner is going to have a performer plus priced in a range that consumers can afford.
I believe the sweet spot will be in the $500 to $600 price range.