Not shocked at all. Whether the price is justified or not, it still it too high for an introductory product. It's a new mobile OS on a new tablet so having the only model priced that high already spelled doom. Like I said before, they should have released the wifi-only model first and then came out with the 3g/4g model WITH 4G already built in. Not sure if VZW made them come with the 3g/4g model first for advertising (because we haven't seen any advertising from Motorola themselves) but the wifi-only model would have sold a lot better. Which takes me to my next point, where is motorola's advertising? Are they just hoping VZW does all the leg work? Anyone notice that Apple does their own marketing for their products while the carriers just talk about the phone being on their network? How come motorola isn't actually marketing the features of the device and leaving it up to VZW who shows a futuristic ad with a guy hoping into a space ship with thunder and lightning in the background where most people do not relate to? How about showing someone doing real things WITH other people on the device? Sheesh
But having that high price tag, you gave people an easy choice in picking the iPad 2. The 4G phones aren't costing anymore than the 3G ones so anyone allocating the inflating cost to the radio is going a little overboard. This will go down like the Nexus 1. A good device, poor advertising, high price and small sales numbers. Most of the people that are buying these things are just anti-apple (just because it's cool to dislike Apple nowadays) and itching to have a tablet but refuse to get the iPad. But for the extra money this thing does nothing much more than an iPad that justifies a much higher price. Like I said, the price may be justified but the market dictates your price and not what you need to make your goal margin. The Xoom will sit on the shelves, the price will be knocked down (by that time, few will care) and you'll earn less margins anyway.