The Motorola XOOM is most certainly not a flop

By on Apr 6, 2011 at 3:30 PM
Opinions April 6, 2011

The Motorola XOOM is a flop, several blogs proclaimed today on news that Deutsche Bank analysts estimate that Motorola Mobility has only sold 100,000 XOOM tablets so far. Only? In an unproven market that is barely a year old, we’re looking at a brand new device that is selling at a rate of 75,000 units per month. We’re looking at a brand new device with a brand new operating system that is the first version of Android to address the tablet market. We’re looking at a brand new device that has likely pulled in more that $70 million in hardware sales. We’re looking at a brand new device that will also be responsible for millions of dollars each month in revenue for carriers and developers. But it’s a flop?

Motorola has not made any information available with regard to XOOM sales. Deutsche Bank analysts used a very unscientific method to arrive its 100,000 figure, but for the sake of this writing, let’s presume it’s accurate: Motorola sold 100,000 XOOM tablets.

The XOOM launched on February 24th in the U.S. with only one version available: an $800 model with Wi-Fi and embedded 3G connectivity. This means the 3G XOOM has been available for a mere 42 days — not even a month and a half. Then on March 27th, just 10 days ago, Motorola launched a Wi-Fi-only version for $600.

So, according to Deutsche Bank, Motorola has sold 100,000 XOOM tablets in less than a month and a half, which is an average of over 75,000 units per month. That’s a flop?

The XOOM starts at $600, which means it is responsible for $60 million in hardware sales at a bare minimum. That’s a flop?

Since the $800 3G version of the tablet has been available for 42 days compared to only 10 days of availability for the Wi-Fi version, it could be safe to assume that more 3G units have been sold than Wi-Fi units, which drives up sales totals significantly. Even at a conservative 50-50 split, we’re talking about $70 million. That’s a flop?

What’s more impressive here is that this is a tablet. The tablet market is barely a year old and it’s dominated by a single device — Apple’s iPad. We don’t even have conclusive evidence that consumers want tablets. We know they want iPads, and we have plenty of anecdotal evidence to suggest the tablet market will be huge, but it is still in its infancy and it is absolutely unproven.

So here we have a tablet that’s not even a month and a half old… doing somewhere north of $70 million in sales… in a market that is barely a year old and currently dominated by a single device… and it’s a flop.

And let’s not forget that the XOOM doesn’t stop making money at the sale. Carriers make money post-sale thanks to data plans, developers are making money on app sales, Google is making money, and so on.

Comparing XOOM sales to iPad sales is great for hits, and it’s obviously true that Apple has created a behemoth that will likely own the tablet market for years to come. But to call a device a flop simply because its sales don’t measure up to the astronomical numbers recorded by the original iPad is anything but productive. The iPad is the winner, without question — but second place is absolutely not the first loser in a market worth billions.

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  • http://profiles.google.com/motorolaandroidindonesia MOTOROLA ANDROID INDONESIA

    Once more Deutsche Bank analysts estimate fail. In fact; Motorola Mobility report 250,000 units Motorola XOOM Solds.

  • http://profiles.google.com/motorolaandroidindonesia MOTOROLA ANDROID INDONESIA

    The winner is not how fast you start. The winner is who go to finish first. Motorola XOOM now is in Asia (Hong Kong, China, Singapore, Hong Kong), Australia, India and more country.

    • http://caspan.com Caspan

      I wish I could unsubscribe from this 4 week old post that people keep arguing an opinion of one report!

  • http://www.facebook.com/people/Terrin-Bell/690507487 Terrin Bell

    Motorola makes crappy products. Period. I have had two motorola cell phones (not android based). A motorola landline bluetooth phone. I also have had Motorola bluetooth headphones.

    Motorola uses cheap materials mostly plastic to build’s all its’ products. The cell phones I have had both cracked by where the power cord meets the phones. This is largely because of the previously mentioned cheap plastic, but it is also because Motorola’s doesn’t know how to design a power adaptor. They generally use a very small connector that it is prone to bend (compare that to Apple that uses a very think connector that is stable). Both motorola phones had to be replaced prior to the expiration of the contract.

    The software on the blue tooth cordless home phone was horrible. It was supposed to allow landline calls and cell phones calls to connect to one handset. I gave it a week try. I returned it.

    I will not criticize Motorola on the bluetooth headphones too much. The build quality and materials were cheap, but I only paid $29 from them online (not from Motorola). That was less expensive them some competitors.

    So, I have little faith that the Xoom is a quality product. Nothing Motorola builds is a quality product.

  • JohnPA2006

    To anyone who bashes the Xoom, saying it doesnt have as many apps as the iPad,
    know this you little flip flop with socks wearing, latte drinkin, prius drivin, no signal havin, glass front and back havin, sissy mary’s.

    The simple reason ipads have apps is because it cant render something in its browser so they contain it in an app.

    Android phones and tablets can run flash, which means they can access everything on all web sites.
    Hence you dont need, “an app for that” because it can already run it as is.

    Sorry just had to vent.

    sent from iPhone! :o P

    • Anonymous

      Most iPad apps accomplish things that have no relations whatsoever to flash or web browsing.

      The reason there are so many apps for iPad is because there are so many iPads!

  • http://www.facebook.com/jerome.villanueva Jérome Villanueva

    The Apple iPad is THE gold standard for tablet devices today. By this reference, the Motorola Xoom is a flop!

    • JohnPA2006

      and to you sir I say, “Baaaaa, Baaa” sheep boy !!
      I visualize you roaming a green countryside grazing on green grass.

      How do you feel sheep boy owning a $500+ device that cant run flash.
      Ohhh burn !!!!!

      Sent from my iPhone !

  • Anonymous

     Well, that was a stretch. 

  • http://www.facebook.com/profile.php?id=648629129 Anupam Mishra

    I think at this early stage for Tablets we should think more of innovations and Technology.
    Don’t get shocked but I work for Apple and I know we make some amazing
    products but at the same time I also believe every consumer should do a
    proper research before buying a product. Things like your Computer,
    Tablet and phones can completely change the way you communicate with the
    world. So always know why you are buying the product and will it serve
    the Main purpose of the purchase.

  • palerider

     LG and Samsung enough said.

    • http://caspan.com Caspan

      Post is almost 1 1/2 months old…. Enough said! Wow

  • Guest

    This blog is getting out of control. Xoom – 100,000 units – declared not a flop, because it’s a new entry etc etc

    RIM 250,000 Playbooks to date and it get’s bashed to hell here when it’s the same thing – new entry
    - it’s too hard to turn on, and if a two year old can’t get to the home screen by holding it, it’s not friendly
    -omg it’s recalled (ya, 00.4% of them…)

    Some biasing going on ?

  • Schlymer

    The playbook is out selling the xoom 2.5:1 and the apple lovers are calling it a flop too.  I would say that this will be the death of the nobel stranglehold ipad has had on the market.  My playbook as is out performs apple crap and I download music updates etc directly from the cloud using wireless.  You apple freeks have to load the apple virus app store to your computer and sync everything.  You are all suffering from your own shortsightedness and Steve Jobs has you bent over the table, while he sticks his version of a tablet up your ringpiece.  …but good luck with that.

  • Anonymous

    Judging by the fact that nobody has one….. yes it is a flop.

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