Motorola Xoom Parts Priced

[DF Smod]

It’s pretty hard for anyone to argue that the Motorola XOOM is not an incredible product, but that hasn’t stopped the onslaught of angry would-be customers over its $799 premium price tag. And thanks to the WSJ, we can see the exact breakdown for the pricing of each component and how it compares similarly to that of the original iPad.

Thanks to wicked

Continue reading @ DroidLife

 

[cpjr]

Markup on electronics is a turd.

 

[kodiak799]

Markup on electronics is a turd.

True, there's a lot of room for these prices to come down. But point of contention - those prices don't include R&D, marketing and distribution costs.

What I take from that is it's got about $35 more in parts and retails for about $70 more than the IPad. Doesn't seem outrageous, but then again there's a lot more competition out there than with the launch of the IPad so you would have expected price to go in the opposite direction.

Also, not sure if that includes the LTE hardware or if that's a "free" upgrade.

 

[DF Smod]

The LTE Upgrade is free -

 

[Haloman800]

I think $500.00 would be the perfect price - It'd be affordable by everyone, and it'd go head-to-head with the iPad.

I'd even buy one, and I hate tablets.


$600 seems more realistic though, $800 is outrageous.

 

[jroc]

^I said almost the same prices a few minutes ago on another forum.

The iPad, I woulda priced at $550-$600 for the most expensive model, the Xoom $600-$650.

That is enough for me to make a profit IMO.

 

[cpjr]

Markup on electronics is a turd.

True, there's a lot of room for these prices to come down. But point of contention - those prices don't include R&D, marketing and distribution costs.

What I take from that is it's got about $35 more in parts and retails for about $70 more than the IPad. Doesn't seem outrageous, but then again there's a lot more competition out there than with the launch of the IPad so you would have expected price to go in the opposite direction.

Also, not sure if that includes the LTE hardware or if that's a "free" upgrade.

I know, but they are making bank at the same time.

Another good example, got a friend who is a Best Buy store manager, so when I need something I let him grab it....

Stuff like TVs dont have alot of markup, but accessories and such are CRAZY.

I bought a flat panel TV wall mount and 2 HDMI cables a couple months ago, price tag at BB:

Wall mount - $149
HDMI cable - $79 EACH
Total - $307 + tax

My buddy paying actual store cost:

Wall mount - $27
HDMI cable - $6.99 each
Total - $40.98 + tax

Yeah, $266 difference.

 

[cpjr]

Of course, the store's monthly rent is also $50,000 :icon_eek:

 

[patfactorx]

Motorola is selling to carriers not consumers so they are making less on the margin but making up for it in volume.

 

[dfuser312553]

I don't know what moto was thinking with the premium pricing on the Xoom. I'd rather own a win 7 tablet with better hardware for 2/3 the price.

 

[soops]

I think Moto (Xoom) is expecting to compete w/ ipad2. Xoom vs. ipad (1st gen) it isn't the right comparison. Apple has a strong headstart on the no. of apps optimized but that should be expected for being a pioneer. I'll be surprised if ipad2 price is going to be much different than Xoom.


Also Xoom is a new product & it's consider high end (1st honeycomb tablets) so they must've feel that is the "right" early pricing. As more honeycomb tablets launched w/similar specs the "right" pricing will be corrected b/c at the end of the day, it's all about supply & demand (and competition). I'm itchy to get one but can't justify the high cost just for having the latest & greatest!

 

[dfuser312553]

I think Moto (Xoom) is expecting to compete w/ ipad2.

The #1 weapon manufactures have to compete with apple is pricing. Way to waste that moto.

 

[kptphalkon]

Markup on electronics is a turd.

True, there's a lot of room for these prices to come down. But point of contention - those prices don't include R&D, marketing and distribution costs.

What I take from that is it's got about $35 more in parts and retails for about $70 more than the IPad. Doesn't seem outrageous, but then again there's a lot more competition out there than with the launch of the IPad so you would have expected price to go in the opposite direction.

Also, not sure if that includes the LTE hardware or if that's a "free" upgrade.

I know, but they are making bank at the same time.

Another good example, got a friend who is a Best Buy store manager, so when I need something I let him grab it....

Stuff like TVs dont have alot of markup, but accessories and such are CRAZY.

I bought a flat panel TV wall mount and 2 HDMI cables a couple months ago, price tag at BB:

Wall mount - $149
HDMI cable - $79 EACH
Total - $307 + tax

My buddy paying actual store cost:

Wall mount - $27
HDMI cable - $6.99 each
Total - $40.98 + tax

Yeah, $266 difference.

For the record, the cheapest brand hdmi cables have been shown to provide at most a 1.4% (and hardly if at all noticable to the eye) difference in picture quality.

Back on topic!

 

[kodiak799]

I don't know what moto was thinking with the premium pricing on the Xoom. I'd rather own a win 7 tablet with better hardware for 2/3 the price.

Don't forget that the carriers are playing a pretty prominent role in pricing. I think they are colluding with the OEM to inflate retail prices so people have to lock into a contract to afford it.

 

[EgooEspada]

I think $500.00 would be the perfect price - It'd be affordable by everyone, and it'd go head-to-head with the iPad.

I'd even buy one, and I hate tablets.


$600 seems more realistic though, $800 is outrageous.

Motorola is in the business of profit, not charity. Sorry, but theres much more to take into account here and quite frankly $500 is too cheap. Theres the marketing, the R&D and the LTE radio.

I will say they could have went $749; could even find a way to get it at $699 if they wanted to really be competitive. I know I would have tried for at least $749; its possible.