Dixons has slashed the price of the Motorola Xoom 32GB Wi-Fi tablet to £329, making it £150 cheaper than the equivalent iPad 2.
The Xoom was the one of the first Android Honeycomb tablets released in the UK, and the Wi-Fi edition originally retailed at £499.99.
Dixons has taken the lead with the price cuts, but it remains to be seen whether the move willl boost sales of the 10in tablet. Amazon offers the 32GB Wi-Fi version for £346 and Expansys is still charging £399.
Dixons has also reduced the 3G version to £399, down from £579. This makes it £180 cheaper than the equivalent 32GB 3G iPad 2, representing another significant saving for prospective tablet buyers.
Sales of the Xoom have been lacklustre so far. Deutsche Bank estimates that Motorola sold only 100,000 units after two months on sale in the US. The manufacturer confirmed that it shipped 440,000 units in the second quarter.
The price cut could signal the imminent arrival of the Xoom 2. Google's $12.5bn acquisition of Motorola Mobility makes it odds on that all forthcoming Motorola devices will be the first to ship with the latest Android software.
The cuts also come two weeks after HP authorised a fire sale of its TouchPad tablet, slashing the price to £89 which retailers including Dixon, Currys and PC World passed onto consumers.
There was a scramble to get the cut-price device, and many online retailers sold out almost immediately.
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