iPad is in for a tough year. Digitimes examined XOOM bill of materials versus iPad and finds the value of the parts alone in XOOM is $356 while the iPad comes to $320. iPad2 may catch up but it is still largely an unknown. On top of that better software and features makes XOOM an iPad killer.

Apple is expected to produce more than 6 million iPads in Q1 2011 with iPad2 coming on-stream soon. It remains to be seen whether XOOM and others can take a bite out of the 40 million iPads that are expected to sell in 2011. Apple has ordered huge quantities of parts. We shall see how Apple v World of Android Smartphones turns out.

See what Preston Gralla has to say on the matter.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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3 Responses to XOOM DOOM

  1. Yes, it has been disappointing that competitors of Apple figure they can take Apple-like margins when they are not first to market. Fortunately there are many other decent tablets at much lower cost. The high-end market is pretty well saturated. I doubt folks who bought iPad1 last year will go out to buy iPad2 this year. I expect to see rapid cuts in XOOM prices in a few months.

    One thing the iPad2 seems to have that the others do not is “thin”. I am not sure what advantage more thinness gives. Is it just more fragile? I have read on Digitimes that Apple has entered huge orders for components so that competitors just will not be able to build as many machines as they can sell. That will tend to keep prices high and prop up Apple’s monopoly.

  2. oldman says:

    iPad 2 just came out – it has the same specs as the XOOM and can be actually cheaper than the XOOM in some configurations.


  3. Ray says:

    Ohh… competition. I wonder how that’ll turn out.

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