Motorola Xoom costs $278 to build: Just $33 more than the iPad and still no $500 Xoom on offer?

March 1, 2011, By Shawn Wagnon

This should be good to take a look at. The experts who are capable of ripping apart your Xoom and iPad to individual components and calculating the “cost-to-build” have just come in with the news. And according to these guys the Xoom costs $278 to make and that is just $33more than what the iPad costs. Impressive considering that the Xoom is ahead of the iPad in the hardware department and also sports cameras on-board. But, if that is the case, then why not unleash a $500 basic Xoom for everyone?

That is the big question and while there will be those who will point out how Xoom is better in terms of hardware and features compared to the iPad, for the basic tablet user cost is a very important factor. Add to that the ‘cool image’ that an iPad carries and the casual consumer would be tempted to pick up the iPad for $499 compared to the Wi-Fi-Only Xoom for $599. So, why not get more competitive by giving that basic Xoom?

Now we understand that Motorola needs to make profit. And they also need to off-set the costs of all those Super Bowl ads and the free golden Xooms distributed at the Oscars. But maybe the better way to market it would have been to hand out fewer free Xooms to the stars and cut down the price of the Wi-Fi-Only version by $100. If not, at least by 50 bucks?

We think that would help; especially when you can only make profits if you sell your tablets in the first place. That and if the iPad 2 comes at $499 in a day or two (launch), consider the Xoom stuck in deep trouble!

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