Motorola’s Sanjay Jha explains $800 Xoom pricing

Motorola XOOM

Many people who were dead set on grabbing the Motorola Xoom the second it landed on Verizon’s shelves may have gone back on their decision when they heard that it will cost $800 at launch. The terribly sexy and expensive tablet may have what it takes to take the crown as the best Android Honeycomb tablet, but the price just might not sit right with everyone. Well, Sanjay Jha decided to go on the record and explain the pricing of the tablet.

Apparently, the extra cost is due to the fact that you can upgrade the Xoom to give it 4G capabilities.

“We felt that our ability to deliver 50Mb/s would justify the $799 price point. It is 32GB with 3G and a free upgrade to 4G. Being competitive with iPad is important. We feel that from the hardware and capabilities we deliver we are at least competitive and in a number of ways better [than the iPad].”

Jha’s response does make some sense — you basically gotta pay to play — but I seriously doubt a majority of users will be seeing 50Mbps in real life situations.

For a company who prides themselves on offering choices, we’re surprised that the Xoom doesn’t come with a non-4G LTE option to help make the price tag easier to swallow. The price point tells me that you have already paid the 4G module up front, and the actual installation of it will be free. Hopefully the rumor of Verizon keeping their LTE data plans the same as the 3G plans remains intact, because if it doesn’t it would just be an extra fee to fully utilize your device.

The Xoom’s direct competitor in the Android Honeycomb space is the T-Mobile G-Slate, and while we have no idea how much the 3D-centric tablet will cost, I’d have a hard time believing it will run you $800. Throw in the fact that the G-Slate will be HSPA+ capable out of the box just makes me want LG’s tablet even more.

So do you think that Motorola offering up Verizon’s LTE service justifies such an outrageous price for the Xoom, or will you be looking to the competition?

[Engadget via WSJ]

  • http://twitter.com/ihbrune Henning

    I want a wifi-only version. On the go I have tethering via my Android phone.

  • http://twitter.com/cybler David Barkman

    95% of consumers will only look at the price tag. Joe Consumer will be standing in Best Buy and say, iPad Wifi, $499 or Xoom Wifi $599…umm…iPad. Jack Consumer, his cousin who needs to keep the tablet connected will look at iPad 3g, $629, Xoom 3g $799…umm…iPad 3g.

    Jack and Joe don’t give a crap about the hardware you put in these devices, we’re coming out of a recession, some people think we’re still in a recession, they don’t want to spend almost $1000 for essentially a toy, something they want, not need.

    Xoom looks great, but it will be DOA. Until some hardware maker gets it through their thick skull that you have to beat iPad’s price to beat them in the market, iPad will remain the king.

    • Samarth Rajendra

      Get your facts straight before you make a comment. The Xoom is $599 for the 32GB model, as is the iPad. You think Joe Consumer doesn’t realize the difference between a 16GB iPad that costs $499 and a 32GB one that costs $599? Give Mr. Joe more credit than you are right now, not everyone who walks in to Best Buy has an IQ equivalent of a chipmunk. Just because you are not willing to spend $800 or $600 doesn’t mean others aren’t. People realize how big Android is getting and the interest is only going to pique once they see all the features of Android 3.0. True, the iPad is currently king of the hill and was the first to market, but if you genuinely believe that the Xoom is going to be DOA with all its killer features, you don’t understand the first thing about marketing. People who are in the market for a tablet know already that it’s a luxury, not a necessity. They are using their ‘discretionary’ income to purchase it, not their ‘disposable’ income. There is a difference, look it up. As far as I’m concerned, if I am using my discretionary income to purchase a luxury, I’m going to make sure I get the best damn thing for what I’m paying. Price isn’t the only thing that matters to Mr. Joe Consumer, especially when it comes to a luxury.

  • Anonymous

    Jeez, I still don’t know how I feel about this. Pricing is everything and even though the Xoom is sweet, I don’t think I could justify paying that much. It’s the same cost as a notebook computer.

  • http://twitter.com/WillieFDiazSF William Diaz ?

    First off, 4G isnt even a thought really. Any company that markets 4G right now as a reason to mark up prices is retarded and while the average consumer (because most Americans are ignorant) wont see that 4G has almost NO coverage in comparison, its not worth the extra price even if there is an “upgrade” in the future when coverage is more stable.

    The price of the Xoom (which is a blatant rip off of the Xohm name from Sprint’s original 4G name Ill add) is higher then some of the top of the line netbooks, and mid-grade laptops out there. Hell, the price of the Xoom, I could buy TWO laptops. And for only $100-200 more I could actually buy a MacBook, which has a lot more gigs then 32gb memory!

    Motorola clearly hasnt learned from their previous fails and maybe its time to voice our opinion with this one again and buy the competitor.

  • PaulC

    iPad with Wi-Fi Connect to the Internet wherever you can access a Wi-Fi hotspot.
    16GB

    * Ships: Within 24hrs
    * Free Shipping
    * $499.00
    *
    Select iPad with Wi-Fi 16GB

    32GB

    * Ships: Within 24hrs
    * Free Shipping
    * $599.00
    *
    Select iPad with Wi-Fi 32GB

    64GB

    * Ships: Within 24hrs
    * Free Shipping
    * $699.00

    Motorola xoom WiFi only 32GB at best Buy $599.00 same exact price as Ipad 32GB Wi-Fi only (compare apples to apples not 16GB to 32GB)

    Yes I love to see a $399 Tablet (oh yes their is the Viewsonic G pad but it is much less superior to the Ipad and you can buy it now for $399 at sears) but the xoom is not equal to the Ipad 1 but much more superior and costs the exact same price what are you bitching about?

    On the other hand
    iPad with Wi-Fi + 3GConnect to the Internet at Wi-Fi hotspots and over AT&T’s 3G cellular network when you’re on the go; 3G service sold separately.
    More about 3G service
    16GB

    * Ships: Within 24hrs
    * Free Shipping
    * $629.00
    *
    Pre-Order iPad with Wi-Fi + 3G 16GB

    32GB

    * Ships: Within 24hrs
    * Free Shipping
    * $729.00
    *
    Pre-Order iPad with Wi-Fi + 3G 32GB

    64GB

    * Ships: Within 24hrs
    * Free Shipping
    * $829.00

    Motorola xoom 3G with Free upgrade to 4G with 32GB at best Buy $799.00 is $71 more than the Ipad 32GB 3G but again the xoom is far more superior with two cameras, duel core processors, 1 GB and much more improvements from the Ipad. Yes I would love it to be cheaper but with all things considered I think it is compatibly priced.

  • Ron

    After owning original droid and now droid x, I will not own another Motorola device ever again. This is probably locked down just as they do their phones.

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