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? More →
Motorola Mobility has sold 100,000 Motorola XOOM units through the tablet’s first two months of availability, Deutsche Bank analysts claim. The firm arrived at the 100,000 figure by using the Android developer site to see how many people are currently using the Honeycomb OS. Dow Jones’ Shara Tibken notes in her wire report that Apple’s original iPad sold 300,000 units on its first day of availability alone, rendering sales of the XOOM less than impressive. Comparing XOOM sales to iPad sales makes for good chatter of course, but a sell rate of 50,000 units per month is certainly respectable for the Honeycomb tablet. Deutsche Bank states that the current estimated sales pace is in line with its estimates of 50,000 units in the first quarter and 150,000 in the second quarter of 2011. Motorola has not revealed official sales figures for the XOOM.
Another analyst has cut revenue estimates for Motorola Mobility, again citing poor sales of the company’s key products as the driving force behind the downward revision. Pacific Crest analyst James Faucette on Tuesday revised his full-year 2011 revenue estimates downward from $13.7 billion to $12.25 billion. Further emphasizing his position on Motorola, he revised his full-year 2012 revenue estimates down from $15.34 billion to $13.62 billion as well. “Based on our checks, we believe overall sell-through trends for of the Xoom and Atrix have been disappointing,” Faucette said in a note to investors. “In particular, we believe Atrix’s lower-than-forecast volumes are a result of the $49 iPhone 3GS and the HTC Inspire, which kept Atrix sales well below forecast in spite of the marketing focus put on the Atrix by AT&T.” Faucette’s note follows a similar note from RBC Capital Markets analyst Mark Sue last Friday, in which he cut Motorola sales estimates for both the first and second quarters of 2011.