Motorola's Xoom tablet to be pricier than iPad
Motorola Mobility Holdings Inc.'s forthcoming Xoom tablet computer will be more expensive than Apple Inc.'s comparable iPad model, with initial versions selling for about $800.
The handset-maker spun off from Motorola Inc. wants “people to make a choice based on the capabilities we deliver rather than just price,” Chief Executive Officer Sanjay Jha told reporters in Barcelona today. “I have always taken the view that to compete with Apple you need to deliver a high- quality product rather than compete on cost alone.” Apple's 32- gigabyte, 3G-equipped iPad model sells for $729.
Motorola is among device makers looking to build buzz for tablets based on Google Inc.'s Android operating system at the Mobile World Congress in Barcelona. HTC Corp., LG Electronics Inc., and Samsung Electronics Co. have all unveiled tablets at the four-day industry event, most smaller than the 9.7-inch iPad and 10-inch Xoom.
The Motorola tablet received a high-profile endorsement last night when Google CEO Eric Schmidt used part of a keynote address to demonstrate its capabilities for viewing and editing videos. The device's ability to work over faster, fourth- generation mobile networks helps justify its higher price, Jha said.
Motorola Mobility climbed $1.29, or 4.6 percent, to $29.67 at 4 p.m. in New York Stock Exchange composite trading.
Android's Gains
Jha, 47, decided to rebuild Motorola's ailing handset business around Android in 2008 and the bet has paid off, driving sales of models such as the touch-screen Droid. Android became the world's best-selling smartphone platform in the fourth quarter, researcher Canalys said last month.
In the same period, Android's share of global tablet shipments jumped tenfold from a year earlier to 22 percent, according to Boston-based Strategy Analytics. “Nearly all” of Motorola's 2011 mobile products will be based on Android, Jha said.
The iPad has sold more than 14.8 million units worldwide since its release last April, giving Cupertino, California-based Apple a head start in the nascent tablet market. Jha today said he owns one of the devices.