Business Insider reports that the WiFi-only Motorola Xoom Android tablet had a price drop this week. It went from $599 to $499.
As Business Insider notes, this brings the Xoom’s price in line with the lowest priced WiFi-only iPad 2. However, the Xoom has twice the storage (32GB) and the potential to add additional storage using an SD card. The Xoom also has much better front and rear facing cameras than the iPad 2. And, I found its Honeycomb powered home screen widgets and pop-up notifications an excellent way to quickly scan for new email, Twitter and Facebook notifications.
Despite these component and feature advantages, Android tablets in general and the Xoom in particular need be more price sensitive if they want to compete with the iPad. Amazon figured this out to their advantage when they dramatically shifted the Kindle’s price far below the iPad’s price. Given the same price, many consumers will opt for a product that many of their friends and co-workers have already bought and are happy with – the iPad. Comparable Android tablets may need to get to a price point more like $200 below the iPad’s to attract consumer attention.