iPad 2 Could Force Price Cut on Motorola Xoom

Apple’s iPad 2 has a few features in common with Motorola’s Xoom Android 3.0 "Honeycomb" tablet, including a dual-core processor and dual cameras.

Of course, the iPad 2 is also slimmer and weighs less than the Xoom, but these may be mere trifles for consumers next to the price difference. Apple retained the same pricing scheme for its second-generation tablet as did for its first.

Accordingly, if Motorola and Verizon Wireless execs have any cause for concern, it’s in the pricing, which threatens to undercut their Xoom sales. Verizon is offering the Xoom for $599 with a two-year deal, or $799 without a contract.

The $799 price tag is $70 more than a comparable 32GB iPad with WiFi+3G. Here’s the kicker though: Motorola and Verizon executives could rightfully argue that the price difference was more than worth it over the first iPad because the Xoom boasted dual cameras and a dual-core processor, and is upgradeable to Verizon’s 4G LTE (Long-Term Evolution) network.

The iPad 2 neutralized nearly every premium Xoom feature but the 4G network capability—which, while free, will be a hassle to upgrade to this spring.

So what are Motorola and Verizon to do? Naturally, they could slash the Xoom price point to make it more enticing for consumers. When asked whether Verizon would slash the Xoom cost, a Verizon spokesperson told eWEEK: "We don’t discuss pricing or pricing strategies."

For more, read the eWeek article: iPad 2 Pricing Will Force Xoom Price Cut.