Thursday, February 17, 2011

Motorola Defends $800 Price On Xoom Tablet, Says WSJ

Following up on the news today from Motorola Mobility (MMI) about retail distribution for its forthcoming “Xoom” 3G wireless tablet computer, The Wall Street Journal’s Ben Rooney offers a brief note that CEO Sanjay Jha, speaking at the Mobile World Congress in Barcelona, defended the device’s expected $800 price tag.

The Apple (AAPL) iPad starts at $499, giving the Xoom, which uses Google’s (GOOG) “Android” operating system, an entry point much higher. But Jha pointed out that with a 3G connection and a free upgraded path to a 4G modem, plus 32 gigabytes of on-board storage, the device is more comparable to the higher-priced models of Apple’s iPad, which top out at $829 with a 3G connection and 64 gigabytes of storage.

Moto said the tablet will be carried by The Carphone Warehouse, Best Buy and Dixons Retail Plc., and by Deutsche Telekom A.G., “in selected markets.”

Motorola shares today are down 44 cents, or 1.5%, at $29.23.

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