Jefferies analyst Peter Misek says that :
Xoom sales have been underwhelming. While marketing has just started we believe MMI will likely have to cut production if it already has not done so. We believe the device has been a bit buggy and did not meet the magic price point of $500. We believe management knows this and is hurrying development and production of lower cost tablets. Importantly we believe management will likely have to make the painful decision to accept little to no margin initially in order to match iPad 2’s wholesale pricing.
I think thats its not that surprising as we all know it first of all Its more expensive Then its competitors, and Honeycomb which was the Main appeal of the device is Not yet ready and is buggy and confusing to start with, you cant pick it up and use it. And the New Ipad 2 Has totally Crushed The chances of Xoom to win.You have to make Xoom cheaper. Thats it.
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