updated 12:45 pm EDT, Tue April 5, 2011
Pacific Crest claims Atrix and Xoom sales low
Motorola may be facing serious trouble with sales of the Atrix 4G and the Xoom, Pacific Crest analyst James Faucette said Tuesday. An investigation of the supply chain showed that sales of both Android devices had been "disappointing." Atrix sales were unusually undermined not by the iPhone 4 but, unusually, the $49 iPhone 3GS.
The HTC Inspire 4G also ate into some sales. Faucette saw the impact hedged by generally strong leadership from CEO Sanjay Jha as well as a good cash position that could let it ride out any short term bumps.
The results aren't a complete examination and could leave some room for better results elsewhere. If reflective of actual trends, however, it could suggest the first Android 3.0 tablet failing to mount a credible threat to the iPad 2 in at least the short term.
Most have credited the Xoom's troubles so far to pricing and a rushed release. Until the Wi-Fi version shipped last week, the only model available was the $800 3G edition for Verizon, which was priced almost entirely out of contention versus the $500 minimum asking price from Apple. Google's urging to get Android 3.0 and the Xoom as soon as possible also left it with about 16 tablet-native apps where even the original iPad started with about 1,000, letting it accomplish more from the start. [via Forbes]