Exactly. The features and benifits the Sus is bringing at a 30%+ discount to the Xoom is almost unbelievable, but if they deliver a quality built device at the $399 price no reason to keep my Xoom. Better hardware, cheaper price, same OS. Sounds like Asus figured out how to be competative in the tablet market. Moto should take notes.
Asus has been making our phones and computers for a long time under a number of brand names including Palm Treo, etc. Their quality is good. The 30% savings is from cutting out the middle man.
$600 Xoom tablet
1. Manufacturer:
Foxconn gross markup ~22% ($75) with a parts cost of ~$270.
2. Distributor: Motorola gross markup ~30% ($147), pays ~$345.
3. Retailer: Best Buy or whoever gross margin ~18% ($108), pays ~$492.
Coincidentally, the
Wall Street Journal estimated the Xoom cost per unit at $278 so these estimates are in the right ballpark.
And therein lies Motorola's problem. Motorola doesn't have any factories.
LG, Samsung, HTC, and Asustech actually make and now distribute their own products. Android is a dream product for them because they do not have to develop the OS. The equation changes dramatically when the middle man is removed.
$400 Transformer tablet
1. Manufacturer: Asus gross markup at ~20% ($65) with a parts cost of ~$262.
2. Distributor: Motorola gross markup ~30%.
3. Retailer: Best Buy, Wal-Mart, or Target gross margin ~18% ($72), pays ~$327.
The manufacturer and retailer margins are still good and sales explode. The 30% discount was from cutting out the middle man.
Foxconn and Asus both make good products. Pick whatever one is best for you.
Links:
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Android Central: ASUS EeePad Transformer review.
•
Android Central:ASUS EeePad Transformer pricing and availability (April 26, Best Buy, Wal-Mart, Target, Fry's, Sears, etc.)