Analyst: Motorola Xoom and Atrix 4G sales are ‘disappointing’

Motorola XOOM
Motorola XOOM

Analyst James Faucette of Pacific Crest said in a recent research note that sales of the flagship Motorola Xoom tablet and the Atrix 4G smartphone for AT&T are disappointing. The analyst used channel checks to verify that sell-through on these devices is less than expected. Much of the competition comes from the high-profile launch of the iPad 2 and the debut of the HTC Inspire. The rock-bottom $49 price tag of the iPhone 3GS is also reportedly hurting sales of AT&T’s premier Android handset.

If true, this is disappointing news for the American manufacturer which has spent a lot of time and money developing and advertising its Xoom tablet as a robust alternative to the iPad 2. Faucette lowered his 2011 revenue estimate for Motorola from $13.7 billion to $12.2 billion. A deeper cut was not necessary as Motorola has substantial cash flow and confidence in its leadership under Sanjay Jha is still high. Despite these assurances, Faucette warns Motorola that the company needs to “quickly adjust and refresh its product portfolio” for the rest of 2011 and into 2012 if it want to stay in the Street’s good graces.

[Via Forbes]

  • Motorola’s problem is not weak hardware, or lack of advertising: it is the Motorola’s software policy. The slow pace(or lack) of releasing major updates combined with the locked bootloader, leave Motorola users stranded on devices with poor software. Many users bit the bullet with the Motorola Milestone and Defy and XT720, but now, when you spend a shipload of money on an Atrix or a Xoom, most of people think twice. Former Motorola users will never buy a device from them again, not will they recommend any such device to anyone they know. Motorola seems to be going downhill. Ironically the Motorola Droid, which was an experiment, saved them but experience apparently has taught them nothing. The Droid was loved by the community because there were no absurd restrictions on it.

  • No real shocker here. I think the Xoom has been simply overwhelmed by the iPad2’s release. Other factors include a lot of tech journalists not writing very favorably about the Xoom. I also can’t help but think that Verizon’s dark, space fantasy commercials for the Xoom are helping with mass appeal.

    I am a little surprised the Atrix numbers are disappointing, but competition with the Inspire and iPhone 3GS makes sense. I think a lot of businesses aren’t sold on Android, otherwise one would think that business people on the move would jump on the Atrix and the accompanying laptop dock.

  • Anonymous

    It was pricing, simple and plain. A $500 WiFi-only Xoom wouldn’t have sold 1 million units opening weekend but it would have moved more. $600 with a two-year contract and BS activation fees for a tablet that will likely be used in a living room? No thanks.

  • Well, the Xoom bootloader is not locked, but as Honeycomb is in an early stage of existence, there won’t be any custom ROM’s soon, so you’ll be pretty much handcuffed to the Motorola’s software updates, which have been proven slow. Maybe in a year or so, when Honeycomb will reach maturity, there will be options, but keeping in mind that the user adoption rate for phones is waaaay bigger than for tablets, less devs mean less custom ROMs.

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