Xoom--Not selling very well

**watchout4d** · 03-11-2011, 02:30 PM

“Xoom sales have been underwhelming. While marketing has just started we believe MMI will likely have to cut production if it already has not done so. We believe the device has been a bit buggy and did not meet the magic price point of $500. We believe management knows this and is hurrying development and production of lower cost tablets. Importantly we believe management will likely have to make the painful decision to accept little to no margin initially in order to match iPad 2’s wholesale pricing.”

If the report is true no surprises here. Horrible marketing, horrible P.R., high price, partnership with Verizon, No flash at launch, no 4G (upgrade process a terrible joke), non functioning sd card slot, no wifi version, the suprise would have been if it were selling well.

Let's hope that other manufacturers get their Android Honeycomb tablets to the market quick. Android's strength is in it's numbers, multiple manufacturers working consistently to improve the platform.

**2CupsWithString** · 03-11-2011, 02:34 PM

Hm, I wonder what the G1 sales were like?

This is the start of something, not the end.

**watchout4d** · 03-11-2011, 02:51 PM

Originally Posted by thefredelement

Hm, I wonder what the G1 sales were like?

This is the start of something, not the end.

Yeah, probably true. I think a year and a half from now nothing will be able to touch Honeycomb tablets. Thank goodness for those willing to be patient right now and grow with the platform. I love Android, but I am not in the mood to be an early adopter with so much missing right now--flash, apps, movies, music, Netflix, 4G, SD card.....................

**jeff327** · 03-11-2011, 03:14 PM

A yeah and a half ago so called analysts said Android had no shot of over taking Apple or RIM. Well, a yeah and a half later Android owns the phone market and there is no end in site. With that being said the love affair with Apple and their good but not great products will always continue. But the facts will be the facts and Google will one day dominate this market as well.

We all know Apple was the one who started it all, but now they are playing catch up. They may dominate the tablet market but they are already playing catch up with the technology. There time as the leader on the phone side has passed and in a year or two you will see the same with tablets.

So, I say I love my Xoom and who cares if sales are off to a good start or not. This is a marathon and not a sprint.

**slinky317** · 03-11-2011, 03:16 PM

If anyone at Motorola thought the Xoom would have great sales numbers while being priced at $800, that person should be fired.

**FFR** · 03-11-2011, 03:18 PM

Originally Posted by thefredelement

Hm, I wonder what the G1 sales were like?

This is the start of something, not the end.

like google tv

**garbanian** · 03-11-2011, 03:19 PM

Originally Posted by FFR

like google tv

I giggled.
Also, the name, from the website/game FFR?

**wynand32** · 03-11-2011, 03:32 PM

Originally Posted by slinky317

If anyone at Motorola thought the Xoom would have great sales numbers while being priced at $800, that person should be fired.

I think it's obvious--incredibly obvious, in fact--that this has been a soft launch aimed at getting the first Honeycomb tablet out the door. I don't believe for a second that Motorola expected iPad-level sales from the Xoom at this point.

Personally, I'm very glad they didn't wait to release it. I'm loving my Xoom as it is, and getting Flash next week (and thus PlayOn) means I'll be able to do everything an iPad 2 can do, and much more.

Oh, and golly: an analyst claiming that the Xoom isn't "selling well" (as compared to the iPad, of course, which is an impossible standard). What a shocker.

**mfriedman79** · 03-11-2011, 03:39 PM

Honestly until Verizon or Motorola say something is not selling well then I will take all other comments with a grain of salt. Also, what is the comparison for "flying off the shelf"? Is it compared to what is seen for the original iPad 16GB wifi only, the 32GB 3G version, a kindle or a Nook? I have been seeing lots of negative press out there from supposed reviewers or analysts where a majority of the info is fabricated (ie the Forbes article for one).

Now from my personal experience I live down the street from a Best Buy and walk by a Verizon kiosk at work every day and in the 2 weeks its been out I have seen one being sold every day at the kiosk during the 30 seconds I see it when walking by in the morning or when I go to lunch. The Best Buy employees I talked to on Wednesday also told me that they had been sold out on them since the middle of the last week and had just got another shipment in. They also had multiple people come in each day asking about them during the time they were sold out. When I bought mine on release day they had about 20 to start with.

So while these may not be the same level of sales as the fanatic Apple base brings, I would say things look fairly decent. Especially considering that the BBY where I live is not located in the most financially well off area in the city.

**strudel#AC** · 03-11-2011, 03:42 PM

Originally Posted by slinky317

If anyone at Motorola thought the Xoom would have great sales numbers while being priced at $800, that person should be fired.

I will start by saying I love my Xoom and don't regret the purchase for a second, but this is so true. The Honeycomb tablet market is in its infancy and getting Honeycomb tablets in as many people's hands as possible should be the highest priority, not catering to the minority of the market. I will never understand why Motorola aimed for the minority (which want a high end version) instead of the majority that would be happy with a wifi-only tablet with 16 GB or even 8 GB of storage. The majority of people are not like me and will not pay a premium for a feature that they won't use, and that feature of course is a 3G (or 4G) radio.

I would bet that the amount of 32 GB or 64 GB 3G iPads that Apple sells is laughable compared to the number of 16 GB or 32 GB wi-fi only iPads.

**radsaq** · 03-11-2011, 03:54 PM

Originally Posted by wynand32

I think it's obvious--incredibly obvious, in fact--that this has been a soft launch aimed at getting the first Honeycomb tablet out the door. I don't believe for a second that Motorola expected iPad-level sales from the Xoom at this point.

Indeed. I think the question everyone should be asking is "why the soft launch?" And if you assume the answer is "because they were aware that the software is a bit buggy," are they going to start a major marketing push at some point when they feel confident about the OS?

(And yes, soft launches definitely happen when management wants to ship a product sooner rather than later but doesn't have complete confidence and want to do some real world testing. Believe me.

)

**FFR** · 03-11-2011, 03:59 PM

Originally Posted by garbanian

I giggled.
Also, the name, from the website/game FFR?

Website/game?

FFR are my initials.

**slinky317** · 03-11-2011, 04:02 PM

Originally Posted by wynand32

I think it's obvious--incredibly obvious, in fact--that this has been a soft launch aimed at getting the first Honeycomb tablet out the door. I don't believe for a second that Motorola expected iPad-level sales from the Xoom at this point.

I think you're right. At first I thought it was Verizon who wanted Xoom exclusivity without a WiFi version (and that may still be part of it), but I'm beginning to believe that Motorola realized the software wasn't totally polished so they released it to gauge the initial impression. I really expect the WiFi-only Xoom to come with a full re-launch with a new marketing campaign and a real competitive price.

**FFR** · 03-11-2011, 04:10 PM

Originally Posted by slinky317

I think you're right. At first I thought it was Verizon who wanted Xoom exclusivity without a WiFi version (and that may still be part of it), but I'm beginning to believe that Motorola realized the software wasn't totally polished so they released it to gauge the initial impression. I really expect the WiFi-only Xoom to come with a full re-launch with a new marketing campaign and a real competitive price.

I humbly disagree, if this was a soft launch and motorola wanted to "gauge the initial impression" they would have released the wifi version (like the ipad 1)first followed by the 3g/4g version once they have the module/os ironed out.
Also the lower price point would have enticed a lot more people to purchase the xoom.

I doubt motorola is competent enough to execute a re-launch of the xoom wifi.

Now Samsung on the other hand know how to release a product through exceptional marketing.

Google should have gone with samsung for the honeycomb reference tablet.

**slinky317** · 03-11-2011, 04:16 PM

Samsung? No way - I'm sure Honeycomb would actually need updates at some point.

They should have went with HTC.

**bworley50** · 03-11-2011, 04:28 PM

I am a financial advisor and I pay extra close attention to tech and the like. These reports are coming from the same journalists that mocked the IPad saying it wouldn't sell, oversized phone w/o the phone, cannibalize their own business etc...We will know how many Xooms were sold May 16th. Should sell at least 300k for the quarter.

**cr3amy** · 03-11-2011, 04:34 PM

To anybody who thinks this was a soft launch "because the software is buggy"... come on now. When has that affected a company's decisions any time in the last five years?

If this was a soft launch, it was simply to get the product into developers' hands so that Moto would have more than 20 apps to put on display when they go for the real push.

**2CupsWithString** · 03-11-2011, 04:38 PM

These are the same players as the original Droid launch and I think it's been remarkably similar. Just in this last week alone the Xoom has had a presence on major prime time TV. It will "sink in" eventually, just like the red droid eye and the robot arm did.

Also, it hasn't even been a month yet!

**FFR** · 03-11-2011, 04:38 PM

Originally Posted by bworley50

I am a financial advisor and I pay extra close attention to tech and the like. These reports are coming from the same journalists that mocked the IPad saying it wouldn't sell, oversized phone w/o the phone, cannibalize their own business etc...We will know how many Xooms were sold May 16th. Should sell at least 300k for the quarter.

I saw the 300k figure from the investment firm of Morgan Keegan & Company as well.
300k for a quarter is beyond #failing.
it is downright embarrassing.
microsoft kin sold 800k before it was deemed a failure, and we all know how that worked out for microsoft.

**wedge40** · 03-11-2011, 04:42 PM

Honeycomb tablet will be like the begining of the Android OS, slow but it will compete in the market. Android phones are currently #1 in the US market. Ahead of both RIM and iOS combined. Lets see what's happening in six months with Xoom sales.

So far I love my Xoom, didn't like the price, but technology is my only vice, so no big deal.

**cr3amy** · 03-11-2011, 04:42 PM

Originally Posted by FFR

I saw the 300k figure from the investment firm of Morgan Keegan & Company as well.
300k for a quarter is beyond #failing.
it is downright embarrassing.
microsoft kin sold 800k before it was deemed a failure, and we all know how that worked out for microsoft.

Tons of R&D, delays, and misaligned expectations made that a failure, not just a lack of sales. 800k is nothing to laugh at... unless you're expecting millions.

**bworley50** · 03-11-2011, 04:51 PM

I disagree FFR. Let's assume their NET profit is $80 per unit. That's 10% of retail price as profit. 300k x $80 per is $24 million NET PROFIT in 1 quarter from one device that MMI manufactures. How is that failure?

**FFR** · 03-11-2011, 04:53 PM

Originally Posted by cr3amy

Tons of R&D, delays, and misaligned expectations made that a failure, not just a lack of sales

Yeah you are right what you expressed above has nothing to do with the xoom.
As for lack of sales, Couldn't agree with you more, Motorola released the xoom with no delusions of profit, who needs revenues and profits.

Originally Posted by cr3amy

Tons of R&D, delays, and misaligned expectations made that a failure, not just a lack of sales. 800k is nothing to laugh at... unless you're expecting millions.

With all the funds that went into creating the xoom ("Tons of R&D") why would they expect to sell more than a couple hundred thousand units.

**Rigelian** · 03-11-2011, 05:00 PM

The problem is that all of the R&D that went into the Xoom has reached the market. For example, the wifi versions will cover the market pretty soon, expanding the number of units that R&D costs will be spread over. Not to mention the 7" tablet that moto is talking about putting into the market as well.

Finally, and this is important, the big sellers for the iPad were not the 3G version but the 16GB wifi version. There is still quite a bit of upside to the Xoom.

**dmcman73** · 03-11-2011, 05:11 PM

I don't get it...why is everyone still comparing the Xoom to ALL of the iPad models?? Compare sales of the Xoom to the sales of the iPad with 3G and 64GB and that's your true number....not against EVERY model of the iPad. Yes, Motorola would have done better if they came out with a WiFi model along with the 3G but they didn't probably because of a contract deal with Verizon. Who knows, Verizon may have well helped with the R&D funding to get the first HoneyComb tablet from Motorola and that's why the 3G only was released without the WiFi.

So please stop comparing the Xoom to every model of the iPad because whether you believe it or not, every different "flavor" of the iPad is a DIFFERENT model all together and they compete against each other in a sense.