Motorola Mobility (MMI) dropped the price of its poor-selling Xoom tablet device by $100 today. The Wi-Fi model is now $499. The price drop will not only eat into profit margins, but is unlikely to boost unit sales.
For Motorola, the second generation release of the Galaxy Tab 10.1 will prove to be a more compelling alternative and the Asus Transformer with removable keyboard will attract consumers looking for an in-between laptop-tablet device. When compared to the Apple (AAPL) iPad 2, the Xoom device is less compelling at similar prices, is not as easy to use and has fewer desired apps available.
This begs the question: why do all android-based tablets touted as an Apple “iPad killer” fail?
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Why Android tablets can’t compete with Apple’s revolutionary iPad – MacDailyNews – Welcome Home.