It seems that Verizon (or Motorola) got the message: The Droid Xyboards are too damn expensive when tied to a 2-year commitment. Until today, Verizon was selling the 10.1 Xoom 2 for $529 and required a 2-year contract. Ludicrous. Well, after today’s price cuts, the prices are less absurd, but just slightly.
Verizon lopped $50 off the on-contract price making the 16GB 10.1-inch $479 with the 8-inch retailing just $379. Of course buyers are still required to sign on the dotted line in order to get that price. But the unsubsidized models didn’t get the same love. Never mind that the new tabs are essentially downgraded versions of the 10 month old Xoom, these models still retail for $699 for buyers smart enough to avoid the contract (but dumb enough to want the tab in the first place).
Even with the lower price, the 2-year commitment is very troublesome. By essentially locking an early adopter (every single Android tab buyer still qualifies for this title) into already dated hardware, carriers are dramatically slowing the adoption rate. If Apple or AT&T had employed the same tactic with the original iPad, the iPad 2 would surely not been as big of a hit. But now, whatever delusional Android fanboy buys a Xoom 2 from Verizon on-contract, barring paying the high ETF, they’re locked into that particular model until at least 2013.
It looks like once again everyone’s to blame for another Motorola tablet failure.
Verizon Communications Inc. delivers broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America’s largest wireless network that serves nearly 102 million customers nationwide. Verizon’s Wireline operations include Verizon Business and Verizon Telecom, which brings customers converged communications, information and entertainment services over Verizon’s fiber-optic network.
Motorola is known around the world for innovation in communications and is focused on advancing the way the world connects. From broadband communications infrastructure, enterprise mobility and public safety solutions to mobile and wireline digital communication devices that provide compelling experiences, Motorola is leading the next wave of innovations that enable people, enterprises and governments to be more connected and more mobile. Motorola (NYSE: MOT) had sales of US $22 billion in 2009