Motorola Thinks You'll Pay $800 for the Xoom Tablet

Motorola’s Xoom tablet will cost more than the iPad, but the mobile company feels confident that it can compete with Apple. The Xoom will go on sale for $800 in the United States, Motorola mobility chief Sanjay Jha told The Wall Street Journal, and it will include 32GB of storage and compatibility with the new […]

Motorola's Xoom tablet will cost more than the iPad, but the mobile company feels confident that it can compete with Apple.

The Xoom will go on sale for $800 in the United States, Motorola mobility chief Sanjay Jha told The Wall Street Journal, and it will include 32GB of storage and compatibility with the new 4G network.

Jha believes that 4G compatibility will make the Xoom worth the extra money for consumers. By way of comparison, the 32-GB iPad with 3G compatibilty costs $730.

“We felt that our ability to deliver 50Mb/s would justify the $799 price point," Jha said. "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 [than the iPad].”

While the inclusion of 4G compatibility does appear to add extra value to the Xoom, Motorola still can't match the lower starting price of Apple's iPad: $500 for the Wi-Fi model. Jha said Motorola would eventually offer a 32-GB Wi-Fi-only model as well that would cost around the same as Apple's 32-GB iPad with Wi-Fi, which costs $600.

It's unclear when the Xoom will ship, though a leaked Best Buy ad suggests Feb. 24.

I'm not convinced customers will be attracted to the Xoom's $800 price tag because of the 4G spec. U.S. carriers only recently launched their 4G networks, and until they mature, I don't think people are going to care about 4G versus 3G. The average customer is going to be attracted to the starting price, and $500 seems to be the sweet spot that Apple has nailed.

What are your thoughts on Xoom pricing? Chime in with your comments below.

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Photo of Motorola's Xoom tablet demonstrated at CES 2011: Jon Snyder/Wired.com