Friday, February 18, 2011

MOTOROLA CEO DEFENDS XOOM'S SKY-HIGH PRICE TAG


At Mobile World Congress on Wednesday, Motorola Mobility chief executive Sanjay Jha came to the defense of the company’s decision to price its first Android tablet at $800. The Motorola XOOM will be a flagship Android tablet when it launches in the near future, and Motorola has slapped on a flagship price tag. With 3G connectivity, the 32GB XOOM will be $70 more expensive than an Apple iPad with the same amount of storage. “We felt that our ability to deliver 50Mbps would justify the $799 price point,” Jha told reporters at Mobile World Congress. “It is 32GB with 3G and a free upgrade to 4G. Being competitive with iPad is important. We feel that from the hardware and capabilities we deliver, we are at least competitive and in a number of ways better.” Of note, the 3G XOOM will reportedly also require users to purchase at least one month of cellular data service in order to unlock Wi-Fi connectivity — ostensibly adding another $30 onto the price of the XOOM and making it a full $100 more expensive than the comparable iPad model. The Wi-Fi-only XOOM will be priced in line with the comparable iPad model at $600.

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