Pricing?

[ckeegan]

I still don't get it. People are willing to pay $529 for a Google Experience phone off contract (hello Nexus One and Nexus S), but people are whining about $799 for a Google Experience tablet off contract? Yeah, that makes sense.

PS - MAP is the MINIMUM advertised price. There is no contract price. Hence the reason the Thunderbolt is listed on the same document for $249.

 

[redshift1]

A couple of things:

We know Motorola is planning multiple versions with varying prices.

We know earlier adopters pay a premium for new technology.

We know Apple will offer some iteration of the ipad2 for $500-600.

We have yet to see Motorola's price structure and if it includes lock in contracts or stand alone pricing.

Common sense dictates Motorola Xoom pricing will be on a par with the ipad2 at some point in time. Remember you can pick up a good as new ipad1 refurb right now for $430.00.

Release day purchase probably not a good choice considering tablets are not a necessity.

 

[jcash3]

I still don't get it. People are willing to pay $529 for a Google Experience phone off contract (hello Nexus One and Nexus S), but people are whining about $799 for a Google Experience tablet off contract? Yeah, that makes sense.

PS - MAP is the MINIMUM advertised price. There is no contract price. Hence the reason the Thunderbolt is listed on the same document for $249.

That is a very good point. If you look at the difference in non-contract price, it seems pretty reasonable.

 

[xmr405o]

I still don't get it. People are willing to pay $529 for a Google Experience phone off contract (hello Nexus One and Nexus S), but people are whining about $799 for a Google Experience tablet off contract? Yeah, that makes sense.

PS - MAP is the MINIMUM advertised price. There is no contract price. Hence the reason the Thunderbolt is listed on the same document for $249.

Good point...but people whine because they can't afford it. Lol. I bet you the people whining are not the people who buy smartphones at full retail. Anyways, I don't think the xoom is overpriced but it is expensive but that's just how technology is. When new technology starts to pick up steam, the prices are up there until the market stabilizes. Like I said, I'm glad we'll have other options soon.

 

[Don S]

MAP = Minimum Advertised Pricing.

I work with it all the time. It's because you've got professional full service places who promote products, have trained staff, and honor warranties. They have to sell at reasonable margins to stay in business. But they typically yield considerably happier customers. Best Buy is a good example. I know most of us techies don't think very highly of them, but lets face it, if there's a problem they'll usually take care of it.

Then you've got a guy with a pretty website, working out of his home, using his garage as a warehouse. He can sell at 5% margins with zero knowledge or service and steal LOTS of business away simply by having the lowest price on Google shopping. If something goes wrong, you're screwed. God help you if you want a return or exchange.

That's why MAP exists. Manufacturers WANT their equipment sold by full service places, so they establish a price that you cannot advertise below. In the case of the Xoom that is $799.

The good news is that dealers are welcome to sell at any price they want. They just can't advertise it. And furthermore very quickly there are idiots who will violate MAP on Friday afternoon, rake in sales all weekend, and get a stern warning on Monday morning.

Trust me, unless you're hideously impatient, you won't be paying $799 for your Xoom.

I hope this is true, but when you look at the leaked document and notice the other devices' MAP, particularly the Droids, those prices ARE what you would pay, and on-contract no less, so the MAP here for the Droids = the store price at VZW...

I really hope you are right, but I have a feeling $799 is what we will see...

 

[howarmat]

if this is 799 on contract then full retail is over 1K....that is insane

 

[Don S]

if this is 799 on contract then full retail is over 1K....that is insane

Oh, no way. They could never sell this for $799 AND require a contract. Good as it might be, it could be almost DOA at that price ...

 

[tsanuri]

I still don't get it. People are willing to pay $529 for a Google Experience phone off contract (hello Nexus One and Nexus S), but people are whining about $799 for a Google Experience tablet off contract? Yeah, that makes sense.

PS - MAP is the MINIMUM advertised price. There is no contract price. Hence the reason the Thunderbolt is listed on the same document for $249.

Some people are but the nexus one was considered a failure as far as phone sales go. And when you consider that these devices have markups at retail of over 200%. When you look at isupply the nexus one had a 300% markup. It is just on supplies and not R&D but how much R&D goes in from model to model. I would argue that it is mininmal from model to model.

The only reason why off contract phones are so expensive is because there is no competition and because of that they can sell them at whatever cost since they know 90%+ will only buy on a contract.

And the phone manafactures set the price based off what carrier the phone is going to. The list price on the Evo is only $499 yet the Incredible is $599. Well those phones are basicly the same but the Evo has a bigger screen and another radio so it should cost more to produce. So things are out of whack in the celluar market in the US in a big way. If LTE manages to get true competition then things might get better and we see phones prices where they should be off contract. But I am doubtful it will.

 

[spooky981]

I hope this is true, but when you look at the leaked document and notice the other devices' MAP, particularly the Droids, those prices ARE what you would pay, and on-contract no less, so the MAP here for the Droids = the store price at VZW...

I really hope you are right, but I have a feeling $799 is what we will see...

You are correct, $799 is what the very first adopters will pay. But within the first month internet dealers will start playing games with the MAP.

 

[bgrutter]

Honestly, I'm really surprised that people are so baffled by the $799 price. Not that I'm excited, like anyone else, I was hoping for $599 or less. BUT, the current price is certainly no surprise. How can anyone could have expected this thing to have a price of $500 is astounding.

Not like they can undercut the Galaxy Tap original price. We all know that's just a 7" cell phone. Not to take away from it, but how much R&D does that take?

I'd pay $700 right this minute for the Xoom. That's competitive with the iPad. At $800, I'll have to weigh the pros/cons against a laptop. But still not too surprised.

 

[Don S]

Honestly, I'm really surprised that people are so baffled by the $799 price. ......That's competitive with the iPad. At $800, I'll have to weigh the pros/cons against a laptop. But still not too surprised.

I don't know if we are all baffled, or if we just think that it will FAIL at that price. I feel the latter, for several reasons ..

 

[doubledown]

I'm an Android guy. I have one ipod that was given as a gift and sits in a drawer most of the time. I use a PC. I have two Droids. I think Apple uses tactics that force people into a box and controls the way they use their devices......and yet, I will probably buy an ipad 2 I hear all the Android fanboys saying "it is a better device, of course it will cost more. I fully expected it to and will pay it." Good for you. Enjoy your Xoom. For me a tablet is just a way to use the internet and stay connected around the home and on the go. Having a Xoom compared to another tablet to do this is not worth a $300 premium. Apparently I am not alone. I checked several polls around the web, especially at Android sites. Looks like close to an average of 90% taking these polls are now going to buy an ipad or other device. Let's face it, we are on this site because we support Android, but Apple is the current premium device to beat. They are already proven to be the biggest phone and tablet kid on the block. Why make your competing price point more expensive. Do we rush out to buy Android phones because they are priced way over the iphone? No! The pricing is less or equal so we are able to make a choice, not get a loan just to support our favorite platform. Motorola and Verizon have a great product that will be DOA if they do not work on that price. What a shame. I ebayed several things and put $600 away ($100 more than ipad wifi only) for a Xoom. Hope the ipad 2 is cool. I'll buy the wifi only and have $100 left over for accessories. Thanks for nothing Motorola and Verizon, greed is a bitch and often backfires.

 

[StreakTheQuad]

When you add in tax, VZW activation and the first month's service, it gets very expensive quickly.

"Pigs get fed, hogs get slaughtered..."

 

[ckeegan]

if this is 799 on contract then full retail is over 1K....that is insane

I'm not sure what you don't understand. Verizon doesn't offer 1 or 2 year contracts on the Galaxy Tab or iPad/MiFi.

$799 is the price with no contract (i.e. minimum advertised price). There is no "on contract" price, it's $799 with month-to-month data plan options, no contract. Yes, you would have to pay the first month ($20/1GB, $50/5GB, $80/10GB), but then you could cancel the data plan completely on day 29, and never talk to Verizon again about it. Just use Wi-Fi from then on.

Personally, I want the Xoom. Have since the first day I heard Stingray rumors. I'm getting it on launch day, and I would be amazed if the price dropped at all within the first 60-90 days. In fact, it won't even drop after 90 days, since by then, they'll be shipping the 4G version. The iPad has remained at the same price point since day 1. The Galaxy Tab dropped in price only because Samsung knew they finally had competition coming on the market soon.

I personally think they should have priced it at $649, but this is what you get when the Xoom wins every CES "best in show" award out there.

 

[bgrutter]

Having a Xoom compared to another tablet to do this is not worth a $300 premium. Why make your competing price point more expensive. I'll buy the wifi only and have $100 left over for accessories.

Anybody else familiar with the ole "Apple and Oranges" debate?

You're quoting a price of $500 for an iPad, right? That's for a 16gb WiFi only iPad. The Xoom is 32gb, has expandable memory, and is 3G (we still don't know for sure whether it will cost to upgrade to 4G).

I'm not trying to argue because I like the $800 price. I too think they overshot. However, to even come close to comparing them correctly, you must line it up against a 32gb/3G iPad and that costs $729. That doesn't factor in that the Xoom has expandable memory, but I feel the fact that Apple has a longer reputation for a polished Tablet OS (we all want Honeycomb to be amazing, but still untested) and that should essentially equal out the SD slot and other inputs/outputs. But, you certainly can't sit there and expect them to charge your quoted $500 or even the $600 you saved up.

Again, I'd LOVE to see a $600 price point or less (on par with the Adam), but they didn't decide to do that and I'm not surprised at all.

 

[ckeegan]

Again, I'd LOVE to see a $600 price point or less (on par with the Adam), but they didn't decide to do that and I'm not surprised at all.

I even think it's a long shot to compare the Xoom to the Adam. Honestly, you're comparing Motorola to Notion Ink. Notion Ink has never done ANYTHING before, so there is absolutely nothing saying they're (a) going to survive, (b) going to support the Adam in the future with updates. Of course a completely unproven company is going to charge less, they have to. I'm still dumbfounded that any company would start taking pre-orders, prior to FCC approval.

 

[bgrutter]

I even think it's a long shot to compare the Xoom to the Adam. Honestly, you're comparing Motorola to Notion Ink. Notion Ink has never done ANYTHING before, so there is absolutely nothing saying they're (a) going to survive, (b) going to support the Adam in the future with updates. Of course a completely unproven company is going to charge less, they have to. I'm still dumbfounded that any company would start taking pre-orders, prior to FCC approval.

Lol, have to say I can't disagree with you.

 

[Zaggs]

I even think it's a long shot to compare the Xoom to the Adam. Honestly, you're comparing Motorola to Notion Ink. Notion Ink has never done ANYTHING before, so there is absolutely nothing saying they're (a) going to survive, (b) going to support the Adam in the future with updates. Of course a completely unproven company is going to charge less, they have to. I'm still dumbfounded that any company would start taking pre-orders, prior to FCC approval.

Its not that much of a long shot. The real comparison of Adam to Xoom is hardware to hardware (as Google makes Xoom's UI). Is Notion Ink using unproven hardware? Outside of the camera I would say no (even then swivel cameras aren't new).
Also you seem to be one of those people who doesn't bother listening to anything about the Adam, then comments like you know everything. Notion Ink is on record saying Adam will get Android 3.0, quite a few times actually. FCC approval is not an unknown thing, its usually just a rubber stamp. Considering that the Adam had the vaporware tag attached to it (unfairly in my opinion) I'm not surprised they went ahead with pre-orders. I mean they can show pics of warehouse shelves chock full of Adam's and idiots still complain.

 

[IHateMyTreo]

What about a Toshiba? Toshiba Tablet

Can't tell much spec-wise but it may be comparable to the Xoom. And it has a removable battery.

 

[CriticalMass]

at $800.00 I just lost my interest in this product completely. The tablet market offers basically smart phone functionality with a bigger screen. Which I can go for, but not at that price point.

Apple products are horribly over priced, and even they are cheaper than this.

 

[rushmore]

well the 799 is MAP pricing so they might knock off 200-300 for on contract pricing. we will see

They still screw you over, since two year data plan

My Gtablet costs $350, has Tegra 2, USB host and completely unlocked. The weakness is the display which looks great straight on and slight angles. Sucks looking "up" at the display though.

Xoom level- now way, but $450 total cost more?!? Who is kidding who?

I use wifi tether with my Incredible and do not have to wait for the device to actually release.

 

[ckeegan]

you seem to be one of those people who doesn't bother listening to anything about the Adam, then comments like you know everything.

First of all, I certainly don't claim to know everything about the Adam, but I did look at it as a possibility. The tablet is fine, and I've never said anything negative about the hardware itself, anywhere.

If you read my post, I'm talking about Notion Ink as a company. People buying the Adam are taking a leap of faith to some extent. I know Notion Ink has said the Adam will get Honeycomb, that's public knowledge, but what about beyond that? Again, this is a company that has done nothing in the past. I understand that Adam owners will always have the ROM community, but what if your Adam craps out in 8 months, and Notion Ink isn't in business anymore?

Maybe I'm just skeptical because I've worked in an industry for 8 years, where 80% of my new competition fails within their first year. I just have a hard time buying a relatively expensive product from a startup, but I also know that Notion Ink had no other choice but to charge less for their product, because they are a startup.

 

[ckeegan]

Poster on the "Xoom accessory post" on phandroid.com said: "I have it on good authority from a relative that works for Motorola ( executive ) is will retail for $699 for the 3g/wifi version and $549 for the wifi only model when released , you heard it here 1st !!"

 

[Old Member]

Poster on the "Xoom accessory post" on phandroid.com said: "I have it on good authority from a relative that works for Motorola ( executive ) is will retail for $699 for the 3g/wifi version and $549 for the wifi only model when released , you heard it here 1st !!"

I saw that too. All I have to say is my uncle's, sister's nephew's best friends grandpa works for a friend who says he spoke with Motorola's CEO while they were in the sauna at the club and he said he's heard in some marketing emails that the Xoom should be priced out at $299, wifi only version of course. He was tight lipped about the whole data plan, said it was up to Verizon Wireless. I will check with my other sources to get that info.

 

[dwboston]

I saw that too. All I have to say is my uncle's, sister's nephew's best friends grandpa works for a friend who says he spoke with Motorola's CEO while they were in the sauna at the club and he said he's heard in some marketing emails that the Xoom should be priced out at $299, wifi only version of course. He was tight lipped about the whole data plan, said it was up to Verizon Wireless. I will check with my other sources to get that info.

So the rumored $799 price point is more accurate than the rumored $699 price?

I think people are getting too hung up on MAP pricing. It makes sense to me that the 3G+Wifi version will undercut the comparable iPad. I wouldn't be surprised to see $699 as the retail price out of the gate.