xoom bill of materials 359.92

devereauxx

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So being that im cost conscious and have to feed my kids i went to isupply and found that the bom for the motorola xoom hits just under 400.

http://www.isuppli.com/Teardowns/News/Pages/XOOMBOM-Totals-$359-92-IHS-iSuppli-Teardown-Reveals.aspx

now i love technology as much as the next guy and am currently using a nook color for my tablet of choice, but end of the day motorola is charging early adopters 400 bucks for their engineering and marketing costs on a device that could sell itself. what say u forums?
 

Drew2u

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Early adopters always pay more. Sometimes in purchase cost, sometimes in shoddy software and/or hardware.

In this case, I feel I have a sound piece of hardware with a solid OS, and although the retail price is high, indeed higher than some laptops, I only paid $58 for my Xoom so I have no complaints. (Cashed in all my credit card rewards.)

Is it legal for Motorola to do it? Yes. They will charge what the market will bear.

Is it ethical? This isn't a matter of ethics, it's economics. So see the question above.
 

cparker5

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There are so many hidden costs that the cost of hardware alone seems like a bad costing model.

Sent from my Xoom using Tapatalk
 

2CupsWithString

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Well, I'll look at it like this, I hope the price paid helps Moto make even better hardware and keeps the lights on in their labs for years to come. I haven't had a Motorola product for quite some time and I have to say I'm thoroughly impressed with the hardware and feel of the Xoom.

Sometimes you just pay for being the first group of people and the culmination of parts that they have value higher than their individual price.

As well, just because the parts cost just under $400, the amount of money paid per an hour for the engineers and designers to put all of the parts together in a package like this, at this point in time, has to be valued well over $400 per a tablet.
 

devereauxx

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so drew this question doesnt apply to you so much then but for ppl that bought at or near full price, do you feel that you received a product worth the money paid? some ppl are returning their xooms and some are happier than kids in a candy shop. i want a xoom but the steep cost of entry has me waiting for now. seeing a goodbye xoom post that wont leave the front page of the forums has me wondering should i ever jump in. but more importantly i want to know what ppl feel their xoom i worth. im thinking 400 to 550 for a wifi model.
 

2CupsWithString

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so drew this question doesnt apply to you so much then but for ppl that bought at or near full price, do you feel that you received a product worth the money paid? some ppl are returning their xooms and some are happier than kids in a candy shop. i want a xoom but the steep cost of entry has me waiting for now. seeing a goodbye xoom post that wont leave the front page of the forums has me wondering should i ever jump in. but more importantly i want to know what ppl feel their xoom i worth. im thinking 400 to 550 for a wifi model.

I think the Xoom is great, I'm one of those kids in a candy shop on this one. You pose a great question, is the Xoom worth $800? For me, when I got it on the 23rd, yes it was. It still is today, I'm still happy and it's been a lot of fun for me personally playing with thing and getting it set up and learning a lot from everyone here as well.

Overall, yes, it's been worth it.

Saying that, it's alright to wait, if the Wifi model comes out and 5 other name brand honeycomb tablets come out in the next 6 months I'm sure the Xoom price will drop drastically but right now I'm still happy and I hope other pick them up when it's even cheaper. Really when you think about it, the Xoom started a clock, and it's counting down to the 2nd generation of android tablets :).
 

erzhik

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You have to understand that even though the materials cost only $360, it took a lot more to design it, market it, and build it. If they sell it even for $500, they will not make sufficient profit to cover all of their costs regarding Xoom, not just employee salary or materials.

If you want your business to build itself, you have to make sufficient profit. Plus early adopters always pay more than others. That's the down side of having a device before anyone else.
 

Drew2u

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so drew this question doesnt apply to you so much then but for ppl that bought at or near full price, do you feel that you received a product worth the money paid? some ppl are returning their xooms and some are happier than kids in a candy shop. i want a xoom but the steep cost of entry has me waiting for now. seeing a goodbye xoom post that wont leave the front page of the forums has me wondering should i ever jump in. but more importantly i want to know what ppl feel their xoom i worth. im thinking 400 to 550 for a wifi model.
Even though I didn't pay full price, I'll take a stab at answering on the worth of the Xoom, because that is based on my experience with it regardless of what I paid...

Is it worth $800 to me? I'd say yes... With my Xoom I have a portable device that is lighter than a laptop from which I can connect to the Internet via WiFi and 3G, and from there I can get to the cloud for my docs, images, contacts, etc. I can even run a remote desktop app to connect to my home PC, so when I travel I can leave my heave equipment behind and still be fully connected.

I also make my decision on the Xoom's worth keeping in mind the end-state, with LTE enabled, the SD card slot enabled, and with Flash enabled.

I can totally understand how some may want to get a full-blown laptop for their $800, but for me, the Xoom is worth it...
 

moosc

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lill at like this Apple goes to a tender and buys 10 times the needed chips for the iPad tender gives them a deal why because Apple has only one product and they build a lot. Motorola can only buy half it even less amount of those chips so tender doesn't give them a sweet deal. is the xoom worth 800 yes it is built sowith good stuff. my brand new Chevy avalanche cost me 48000$ but the parts may have only cost 15000 then u had union fees dealer fees etc and it is not going to get better.
 

Liberati0n

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Did I somehow miss that Xoom has a TFT screen?

I guess I must have always just assumed IPS or bust and it seems like they chose bust... so glad I'm waiting for the Asus tablet...
 

devereauxx

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im not saying the price of a product is based solely on the bom and i heartily agree the engineering and marketing should factor into the bottom line price, all this was stated in the original post. im just saying the damn thing is pricey and i want to know if ppl feel the price paid is justified or if ppl like it while its shiny and new but forget about it next week. im enamored with the xoom after seeing one in person however im not $800 impressed and dont think i will be. however i may become $500 impressed but i do want to hear what end users are doing with them that i may have overlooked to see if theres added value that i havent found yet. im a gadget whore and like other readers here own every current gen game system, multiple laptops and desktops and even pay for a game server online at the moment. all i want to know is if the xoom is worth it and why you make think so.
 

devereauxx

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also when looking at the market as a whole i understand that apple can sell their tablets cheaper knowing that paid apps will bring revenue back to them on software side and that motorola doesnt have that same option so the price has to be higher. with that said is the xoom worth the price paid and why. what value are ppl getting out of it that i might be missing.
 

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