News Analysis: The Motorola Xoom has not sold nearly as well as the company had hoped. And although things look dire, it can turn the tide with some inventive moves.
The
Motorola Xoom has been on store shelves for over a month. In that time, the
tablet has not sold nearly as well as the company would have liked. In fact, an
analyst at Deutsche Bank believes Motorola has sold just 100,000 Xoom units
since the device's launch. That puts it well behind Apple's iPad, which saw 15
million unit sales last year, as well as the iPad 2, which is still unavailable
across the United States.
So
what went wrong with the Xoom? On paper, the device looks to be an outstanding
option. It comes with a 10.1-inch display, both a front- and rear-facing
camera, and it runs Google's latest operating system, Android 3.0 "Honeycomb."
But it failed to catch on with customers. Now Motorola is forced to determine
what its next step should be.
Luckily
for Motorola, there are several ways it can go about fixing the Motorola Xoom,
and although they might not be the easiest decisions to make, they are
undoubtedly necessary. Here are the reasons why Xoom is failing and what can be
done about it.
1. Put pressure on Google to fix Honeycomb
When
Google first showed off Android 3.0 Honeycomb, the excitement surrounding the
platform was palpable. Just about everyone thought that the OS, which combines
elements of desktop-based software and mobile software, would best iOS. But it
didn't happen, and now the Xoom is suffering because of it. The time has come
for Motorola to apply some pressure on Google and
get
it to start working out many of the platform's kinks. As critics have said,
Honeycomb just wasn't ready for prime time when it hit store shelves.
2. Where's the differentiation?
One
of the biggest issues facing the Xoom is that it's not unique in any way.
The device comes with a dual-core processor; so does the iPad 2. The Xoom
features dual cameras; so does the iPad 2. It has a 10.1-inch display; so does
both Samsung's and Dell's upcoming tablets. The Xoom is just another tablet on
store shelves that customers ignore because it isn't unique. Motorola must
admit that and find ways to differentiate the product. Getting 4G up and
running on the Xoom might be the best first step.
3. The price is wrong
Motorola
was quick to point out that the Xoom comes in at $800-$29 cheaper than Apple's
most expensive iPad 2 option. Even better, Motorola said, is that with a
two-year contract consumers can get the device for $600. All the while, it
failed to acknowledge that five out of the six iPad 2 options are cheaper than
the contract-less Xoom. And the most apt comparison-Apple's 32GB iPad 2 with 3G-is
$70 cheaper than the Xoom
without a
two-year contract. Motorola needs to drop the price of the Xoom right now. It
has no other choice.
4. The enterprise doesn't care
For
the most part, the enterprise is looking towards adopting the iPad 2 or waiting
to see what the Research In Motion BlackBerry PlayBook will offer. Realizing
that, Xoom has largely lost the corporate world. It can try and make its case
for corporate customers by highlighting some of the finer business features
available in the device-such as its recently announced partnership with Polycom
for MobileTelepresence-but if it doesn't work, it might just need to forget
about the enterprise and focus on consumers for now.
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