A good editorial/rant on Motorola and the Xoom

[Menno]

This is why the Microsoft Zune failed, it was a better device then the iTouch etc, but they thought they could charge the same as Apple. Sorry people, but Apple is the standard and the household name in these devices. If you make your products more expensive then Apple's people will go with what they know.

No the Zune failed because it was microsoft, and because they dropped Playforsure support, creating a whole new DRM which people weren't happy about. People had a bad taste in their mouth thanks to those snafu's and because people equated Windows multimedia with Windows Media player, which was horrible at the time.

They also didn't have a decent music store comparatively, and their marketing for it was minimal at best.

The pricing wasn't the issue (it wasn't even the main issue) If people cared about price they could get one of the other options, if they cared about functionality, the zune's entry level price wouldn't drive them away. Sure, there was the odd consumer that said 'I really wanted to try a zune, but since it's not cheaper I'll go ipod" but they were few and far between.

Think about media players.. The new windows media player really isn't that bad, but most people download itunes anyway (even if they never buy things through it or have an iDevice) because they just assume that WMP sucks. branding and image are important.

The public doesn't know ANYTHING about this product yet except for the cutsy/confusing initial ad. Moto can do a lot to built up interest depending on how they show off the device.

 

[qnet]

No the Zune failed because it was microsoft, and because they dropped Playforsure support, creating a whole new DRM which people weren't happy about. People had a bad taste in their mouth thanks to those snafu's and because people equated Windows multimedia with Windows Media player, which was horrible at the time.

They also didn't have a decent music store comparatively, and their marketing for it was minimal at best.

The pricing wasn't the issue (it wasn't even the main issue) If people cared about price they could get one of the other options, if they cared about functionality, the zune's entry level price wouldn't drive them away. Sure, there was the odd consumer that said 'I really wanted to try a zune, but since it's not cheaper I'll go ipod" but they were few and far between.

Think about media players.. The new windows media player really isn't that bad, but most people download itunes anyway (even if they never buy things through it or have an iDevice) because they just assume that WMP sucks. branding and image are important.

The public doesn't know ANYTHING about this product yet except for the cutsy/confusing initial ad. Moto can do a lot to built up interest depending on how they show off the device.

Well said, I agree.

 

[cparker5]

No the Zune failed because it was microsoft, and because they dropped Playforsure support, creating a whole new DRM which people weren't happy about. People had a bad taste in their mouth thanks to those snafu's and because people equated Windows multimedia with Windows Media player, which was horrible at the time.

I disagree the regular user who buys 80% of electronics doesn't know or care about this stuff. They see Apple iTouch for $X and our Zune for $X and go with what they already know. It is as simple as that.

The pricing wasn't the issue (it wasn't even the main issue) If people cared about price they could get one of the other options, if they cared about functionality, the zune's entry level price wouldn't drive them away.

If people cared about price, which they do, they would go with what they know worked, ie, pay for Apple at the same price. Obivously the bargin basement hunters will not buy the Apple or our Zune, so they are not in the discussion. The people we are talking about are the ones that have the money to spend, but are tech geeks. They see the product they know and respect for the same price as the product they don't know. They will go for the product they know and respect nearly every time. We should have enter the Zune into the mrket the same way I think Moto should with the Xoom, at a lower price then Apple.

Think about media players.. The new windows media player really isn't that bad, but most people download itunes anyway (even if they never buy things through it or have an iDevice) because they just assume that WMP sucks. branding and image are important.

This is not true of "most people". Most people will not download iTunes if they do not have an Apple device. If you are saying most people who have an Apple device download iTunes, I agree, because they are going with what they know.

The public doesn't know ANYTHING about this product yet except for the cutsy/confusing initial ad. Moto can do a lot to built up interest depending on how they show off the device.

Sure a marketing blitz can get interest in their product, but in the end when compared with the iPad 2, which will be out soon enough, your everyday person will see 2 similar products where the Xoom is priced at or more then the iPad. The everyday user will be less likely to buy the less known "knockoff" over the known and respected Apple product.

This is why Moto needed to come in around $600. This would put a superior device at a price less then the inferior iPad.

Just my opinion though.

 

[eallan]

Sure a marketing blitz can get interest in their product, but in the end when compared with the iPad 2, which will be out soon enoug, your everyday person will see 2 similar products where the Xoom is priced at or more then the iPad. The everyday user will be les slikely to buy the less known "knockoff" over the known and respected Apple product.

This is why Moto needed to come in around $600. This would put a superior device at a price less then the inferior iPad.

Just my opinion though.

Absolutely bang on. 600 is insta-buy.

 

[qnet]

I really hope Motorola or Verizon are reading these forums, maybe it will make them change. Every forum or comment I have read have been 90% negative. I'm also still holding out hope that the info about the data plan is false.

 

[Maikai.Guy]

I really hope Motorola or Verizon are reading these forums, maybe it will make them change. Every forum or comment I have read have been 90% negative. I'm also still holding out hope that the info about the data plan is false.

We can only hope. At this point, IMHO, the only thing that can do is change course on price. If they would have released some info along the way... got people excited about the capabilities and what we can do, they would not only redirected press attention, but they would create support for the premium price.

Instead, they are allowing their product to free fall in bad press. At some point, which I think has already passed, the only solution is a price reduction.

The management is clueless. They have allowed this to become a price thing. Anyone with any marketing knowledge knows price is important in product positioning, but not nearly as important as it has been allowed to become in this situation.

 

[Stang68]

We can only hope. At this point, IMHO, the only thing that can do is change course on price. If they would have released some info along the way... got people excited about the capabilities and what we can do, they would not only redirected press attention, but they would create support for the premium price.

All of the early adopters know what the XOOM does/can do. The second I unbox my XOOM I'll know how to use it (and so will you) because I've been watching every scrap of media available. The only thing Motorola can do is lower the price. ****, if it's $600 I'll gladly pay that $20 fee to "activate" wifi...who knows, maybe I'll like that month of 3G data so much that I'll pay for it for the next month.

Maybe that's it...these price leaks could all be set up. Remember when the iPad was about to be announced the WSJ was reporting it would be $1000? People freaked out like we are and then Apple announced it at the dirt-cheap price it is. People were "amazed" with the price all because of what they had heard from rumors. Maybe Motorola is doing the same thing and they're "leaking" info about pricing but will undercut it to $700 or $600, basically guaranteeing all of us on this forum and even normal people to lineup for it on Day One.

Sure, that's a dirty trick since $700 still isn't cheap, but in our heads we will all think, "Wow! I thought it was going to be more than this! Great job Moto/VZW!" We will be so elated that we'll gladly pay that extra "tax" to activate wifi (even though we are also getting a month of 3G when paying that). Here's hoping that is what Motorola is doing, even if they are being diabolical about it, because I'll be so happy to see a price that ISN'T $799.99 that I'll buy it on the day it comes out.

 

[Maikai.Guy]

All of the early adopters know what the XOOM does/can do. The second I unbox my XOOM I'll know how to use it (and so will you) because I've been watching every scrap of media available. The only thing Motorola can do is lower the price. ****, if it's $600 I'll gladly pay that $20 fee to "activate" wifi...who knows, maybe I'll like that month of 3G data so much that I'll pay for it for the next month.

Maybe that's it...these price leaks could all be set up. Remember when the iPad was about to be announced the WSJ was reporting it would be $1000? People freaked out like we are and then Apple announced it at the dirt-cheap price it is. People were "amazed" with the price all because of what they had heard from rumors. Maybe Motorola is doing the same thing and they're "leaking" info about pricing but will undercut it to $700 or $600, basically guaranteeing all of us on this forum and even normal people to lineup for it on Day One.

Sure, that's a dirty trick since $700 still isn't cheap, but in our heads we will all think, "Wow! I thought it was going to be more than this! Great job Moto/VZW!" We will be so elated that we'll gladly pay that extra "tax" to activate wifi (even though we are also getting a month of 3G when paying that). Here's hoping that is what Motorola is doing, even if they are being diabolical about it, because I'll be so happy to see a price that ISN'T $799.99 that I'll buy it on the day it comes out.

I'm wishing and hoping with you. I'll be getting this on the first day, but would really like to see Motorola step up and start educating the masses about their premium product. It's a sad fact the only reason we are so familiar with it's features and benefits is because we have "been watching every scrap of media available".

 

[Menno]

I disagree the regular user who buys 80% of electronics doesn't know or care about this stuff. They see Apple iTouch for $X and our Zune for $X and go with what they already know. It is as simple as that.


If people cared about price, which they do, they would go with what they know worked, ie, pay for Apple at the same price. Obivously the bargin basement hunters will not buy the Apple or our Zune, so they are not in the discussion. The people we are talking about are the ones that have the money to spend, but are tech geeks. They see the product they know and respect for the same price as the product they don't know. They will go for the product they know and respect nearly every time. We should have enter the Zune into the mrket the same way I think Moto should with the Xoom, at a lower price then Apple.


This is not true of "most people". Most people will not download iTunes if they do not have an Apple device. If you are saying most people who have an Apple device download iTunes, I agree, because they are going with what they know.


Sure a marketing blitz can get interest in their product, but in the end when compared with the iPad 2, which will be out soon enough, your everyday person will see 2 similar products where the Xoom is priced at or more then the iPad. The everyday user will be less likely to buy the less known "knockoff" over the known and respected Apple product.

This is why Moto needed to come in around $600. This would put a superior device at a price less then the inferior iPad.

Just my opinion though.

People care about branding. Microsoft had and still has a crappy brand image to a lot of consumers, EVEN those that use their products.

Even if they priced their product lower, it wouldn't be a hit like you're implying. The Zune was still a product made by a company that people felt made inferior products. Look at the whole Sprint/Verizon issue. Sprint, as a whole, offers some really decent plans and they could work for a ton of people. But because of their tarnished brand (and the horrible marketing attempts to fix that brand) most people don't even CONSIDER them when looking at a new carrier.

Brand Matters. More than price, more than quality, more than most other things for most consumers. How the customer feels about your company is what will make them consider or write off your product before they even try it.

 

[cparker5]

People care about branding. Microsoft had and still has a crappy brand image to a lot of consumers, EVEN those that use their products.

Even if they priced their product lower, it wouldn't be a hit like you're implying. The Zune was still a product made by a company that people felt made inferior products. Look at the whole Sprint/Verizon issue. Sprint, as a whole, offers some really decent plans and they could work for a ton of people. But because of their tarnished brand (and the horrible marketing attempts to fix that brand) most people don't even CONSIDER them when looking at a new carrier.

Brand Matters. More than price, more than quality, more than most other things for most consumers. How the customer feels about your company is what will make them consider or write off your product before they even try it.

I do agree on the brand tract of your point. And if brand does matter there is no way the Zune could have been a hit at a similar pricepoint as the iTouch, etc... Would a lower price have guarenteed success? I was not trying to say it was, I apologize if it seemed that way, it would have had a better shot though. At the same or more expensive price there was no chance for the Zune to win against the Apple product line.

 

[Chris Kerrigan]

^^ I agree with essentially everything you have said here. The saying "don't judge a book by it's cover" holds little water when it comes to brand reputation.

The second biggest obstacle Motorola is facing right now is getting their name back on track, aside from attempting to dip into the iPad marketshare. Motorola for many of it's early years made some stellar products, but they lost their touch. Consumers are more familiar with their failures than their success at this point because it's more recent. I'm not saying Motorola hasn't done a great job bouncing back with their Android lineup, but they're really, REALLY going to have to show the public that this is something different, a company worth investing in again.

Don't forget, not too long ago Motorola was on the verge of going completely under.

 

[Menno]

^^ I agree with essentially everything you have said here. The saying "don't judge a book by it's cover" holds little water when it comes to brand reputation.

The second biggest obstacle Motorola is facing right now is getting their name back on track, aside from attempting to dip into the iPad marketshare. Motorola for many of it's early years made some stellar products, but they lost their touch. Consumers are more familiar with their failures than their success at this point because it's more recent. I'm not saying Motorola hasn't done a great job bouncing back with their Android lineup, but they're really, REALLY going to have to show the public that this is something different, a company worth investing in again.

Don't forget, not too long ago Motorola was on the verge of going completely under.

Oh I know, I was a staunch Motorola "Hater" for quite some time. IMO, they still have a long way to go because it seems that with the exception of high end devices that most likely have heavy carrier/google interaction, their products are merely lackluster.

But the OG Droid and subsequent variations are excellent quality products and they hit marketing exactly where they needed to to get people to consider them again.

I'm excited for the Xoom mainly because of honeycomb, the Moto part does make me nervous, but if this thing has Google's fingerprints all over it like the Droid does, it should be a crazy quality product.

the $800 price point is high mainly because it's currently the ONLY price point. I don't think this thing should be $600, but I DO think there should be a $500 (or less) variant. maybe with less on board memory and wifi only. Heck, make a $429 model with 8GB internal and ship it with an 8GB card if you have to, but get the pricing lower.

I just think people are way to quick to claim this concept is DOA and that it's a failure on their part based on information we don't even know to be true. We don't know what the plans, requirements, or price for this thing would be, and there's a LOT of evidence pointing that this won't be the only Moto tablet out there.