Motorola Xoom comprehensively outsold by iPad 2

Motorola has got off to a slow start in the tablet market, after analysts at Deutsche Bank estimated that the firm has sold only 100,000 units after two months on sale in the US.

The figures are based on Android distribution statistics from Google, which show that 0.2 per cent of all Android devices are currently running Honeycomb out of an install base of 50 million.

"There is probably some rounding error in our calculation, but any such differences
are likely minor," Deutsche Bank said in an investor note sent to V3.co.uk.

"This level of tablet sales is in line with our estimates of 50,000 units in Q1 and 150,000 units in Q2. While we believe street expectations may be a bit higher, 100,000 unit [sales] after only two months on the market is a decent start." 

Given that the Motorola Xoom is the only device to run the Honeycomb operating system, the figures could be in the correct ball park.

The main reason for the tepid sales could be the high price. In the US, a SIM-free Xoom retails for $799, and even subsidised versions require customers to pay $599 upfront.

In comparison, the iPad 2 is estimated to have sold 2.6 million units, according to widespread reports.

If the figures are accurate, it would mean that Apple is selling 26 iPad 2 devices for every Xoom that is sold.

The biggest problem that Apple appears to be having is keeping up with demand. Apple stores in the US and UK are quoting a two- to three-week shipping time.

V3.co.uk contacted Motorola and Apple to confirm the sales figures. Motorola noted that the figures from the US were not official and declined to comment on the speculation. Apple had not responded at the time of writing.

Motorola has yet to confirm the official UK release date of the Xoom, but the pre-order price has been reduced ahead of its imminent launch. The device now has the same price as the iPad 2.

Carphone Warehouse has reduced the price of the 32GB 3G model by £20 to £579. The price of the Wi-Fi-only model is now £479 and the device is available from PC World.

07 Apr 2011