phandroid

Another analyst is chiming in to give his take on sales of the Motorola XOOM, and Trip Chowdry of Global Equities outlook is dire. By his number, Motorola has produced between 500,000 and 800,000 and only sold 5 to 15 percent of them. At best, Chowdry believes only 120,000 of the Honeycomb tablet have been [...]

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Shocky

Price drop?

Tablets are overpriced, it's no supprise the Zoom is not selling at current prices.

.Johnathan

What if Motorola can't drop the price any lower, what if that's the lowest they can go and make a profit?

John Jason

Then they don't make a profit. You can't change the market value. If people won't buy them at the current price, then you lower the price. If that means you lose money, then you lose money. Better to lose some of the money spent on production and promotion than all of it.

All companies have bean counters whose job is to constantly recalculate market price in order to maximize overall profit. At some point the top suits will do what the bean counters tell them to do.

Pitamakan

Yeah, if they want the tablet to succeed Motorola absolutely needs to have a Xoom model that matches (or slightly undercuts) entry-level iPad pricing. If it's a loss-leader for now, that's absolutely fine ... if it works, it'll build brand recognition and there'll be money to be made later.