13
Feb
moto-xoom-preorder

Less than a week after the Best Buy ad for the XOOM was leaked, the official pre-order page has launched. Stunningly, the price quoted on the website is $1,199.99, significantly higher than the price quoted on the original ad which was $799.

moto-xoom-preorder

Best Buy pre-order page

If true, the price is an exorbitant markup over the retail price shown in two separate tips we've received of the product listing in the Best Buy systems: both show the XOOM as costing Best Buy $550, with the employee price being just $577.50. Even at the originally leaked price of $800 retail, that's a markup of roughly 45%. At $1200, the markup is 118%.

bb_xoom_internal bb_xoom_internal2

As  mentioned before, the ad also seems to make it clear that a one month data contract is required for activation. It is likely that the contract can be cancelled after the first month, but this is an unnecessary hindrance to buying what already appears to be a highly overpriced device.

bb-ad-xoom

Leaked Best Buy ad

The system for pre-ordering has clearly not been fully implemented yet, as there is no way to actually place an order. However, this obscene price may be the unsubsidized 3G model, much like buying a smartphone without a carrier subsidy. If that's the case, it may make sense to wait a few months for the Wi-Fi only XOOM, which may be a lot cheaper.

moto-xoom-preorder2

Would you be willing to buy the Motorola XOOM with Android 3.0 (Honeycomb) for the price of TWO iPads?

Source: Best Buy via Engadget

Abhiroop Basu
Abhiroop Basu is an opinionated tech and digital media blogger. As a doe-eyed twenty-something he started his first blog TechComet to comment on anything tech-related that caught his omniscient eye. Since then he has blogged for Android Police, Make Tech Easier, and This Green Machine. In the real world, Abhiroop Basu is a resident of Singapore and the Editor of The Digit, a subsidiary of The Potato Productions Group.

  • Jonathan

    If $800 id 45% markup then $1200 CAN NOT be 214%. Lets do the math:

    Markup = ratail price - wholesale price = $1200 - $550 = $650

    Markup percentage = $650/$550 = 118%

    • Aaron Gingrich

      $550(118%)=$650.

      Which would work, if the final price were $650.

      Edit: Double checked to make sure I'm not being clueless. I'm not: http://en.wikipedia.org/wiki/Markup_(business)#Markup_as_a_percentage

      • Jonathan

        Not true. Lets run the math based on the Wikipedia article.
        * Cost x (Markup + 1) = Sale price
        or solved for Markup = (Sale price / Cost) - 1
        * Assume the sale price is $1.99 and the cost is $1.40
        Markup = ($1.99 / 1.40) - 1 = 42%
        sale price = 1200
        cost = 550
        Markup = (1200/550) - 1 = 2.18 - 1 = 1.18 = 118%
        Gee, the answer is the same.

        • Aaron Gingrich

          Whoops, right you are, I am clueless. Good time for a blond joke?

  • BangPowBoom

    That price is ridiculous...... they're gunna have to lower it....... It can't be that good.

    BTW - can "Jonathan" do math better than he can spell...........

    • Jonathan

      I'm a programmer, I just need to be consistent :D

  • Matze

    You don't even think a moment that this is true! Don't you?

    Trainee had some fun i think...

    • Aaron Gingrich

      We are 100% positive they're legitimate. The pictures are from two independent sources.

  • Eric

    Engadget is reporting that the 1199 is a placeholder price and they're confident that the price is still $799.

    http://www.engadget.com/2011/02/13/motorola-xoom-up-for-pre-order-at-best-buy-for-1-199/

    • Aaron Gingrich

      "However, this obscene price may be the unsubsidized 3G model, much like buying a smartphone without a carrier subsidy."

      From ours - essentially the same thing :)

      • Eric

        Not at all the same. A placeholder is a non-real price that nobody has to pay. A subsidized price requires a contract that will suck your money away, or pay the unsubsidized price. I dearly hope (and expect) engadget to be right.

        If this is $1100 subsidized/$800 on contract then it will die. Hello Toshiba Tablet/Galaxy Tab 10.1/G-tablet

      • Nathan

        for example, gamestop is currently taking pre-orders for the Sony NGP for $999.99. They have no idea what the price is, so they toss up a BS place holder.

        Problem is, this placeholder is down right scary since its still close to the rumored price

  • http://stuarthalliday.com Stuart Halliday

    Course the price is going to be high people.
    'Milk the punters dry' is the marketing motto of America.
    After a few months of skimming off the cream, the price will drop considerably.

    Common practise, so why moan about it?

  • Kindroid

    This article provides a lot of hope though. If this product cost BB $ 550, when the early adopter gouging subsides, BB could easily sell it for $ 650.00 and meet their usual markups. For a 3g enabled device, with these hardware specs, kicks the hell out of iPad. And iPad2 specs aren't likely to exceed Xoom's specs. So Apple will either lower its profits on iPad2 or sell fewer units. And this kind of pricing certainly opens the door to a sub $ 500 wifi only Xoom. What would you say to a $ 450 wifi only Xoom. Starting to get excited.

  • Nathan

    at the $800 price, this thing was basically dead already. almost every person working for every android blog, and every major developer has spoken out against it.

    If the $1200 is somehow real. the xoom will be discontinued in 2 months when it doesn't sell more than 1000 units.

    on the bright side, that $577 price for employees is very nice and i'm seriously thinking of calling up a friend to ask for a hook up.

  • kris

    Retarded. They need to be on par or less then the comparable ipad otherwise people will stick with what's proven. I'm a huge android fan but the ipad is better know and already hasthe marketing buzz. From a marketing perspective this is a terrible mistake.

  • http://www.christiantechsaz.com Aaron

    Um...I hated Verizon as it was, now they are just giving more reasons to hate them. I can't wait to see what the G-Slate brings to the table price-wise. I'm guessing T-mo will put it up @ $599 - $699. I will buy one at that cost. :)

  • Chris

    Yeah, Bestbuy and Motorola must be pretty damn high if the think people are going to pay that much for tablet. If it stays at that price point I hope it fails miserably. $500 is a much better price point and no damn 3G.

  • Thomas

    That's why SwayTrain is such a good idea

  • Fadur

    It's a placeholder price to discourage sales before the release date. When has Best Buy ever tried selling a device for more than what Verizon is charging?

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