Report: Motorola’s Atrix And Xoom Struggle To See A Sales Boom

Motorola Atrix (landscape)

The Xoom tablet has been largely thought of as the most credible Android tablet competitor to the Apple (NSDQ: AAPL) iPad. But apparently, this doesn’t mean it’s selling as well as its rival product. And Moto’s exciting new Atrix handset — the one that effectively takes the place of a netbook when you plug it into a screen accessory? It’s not doing much better.

These conclusions come from a research note from Pacific Crest analyst James Faucette (via Forbes), who writes that sales of both have been “disappointing” and “well below forecast.” His data comes from checks with Moto’s retail channels.

Deutsche Bank goes one further and gives a number to the Xoom non-boom: just 100,000 devices since launch (via Business Insider). Its researchers based that figure on stats on the Android developer site, and looking at Honeycomb user numbers. As a point of comparison, people have been guessing that the iPad 2 has sold as much as 500,000 in its opening days (with no actual numbers ever confirmed by Apple or any retail partners).

The Atrix’s main problem, according to Pacific Crest’s Faucette, seems to be competition from the older iPhone 3GS and the HTC Inspire, which are both priced at $49.

Meanwhile, the Xoom has had to contend with a very competitively priced — and media loved-up — new iPad 2, even as the device has faced supply shortages.

Faucette has cut his 2011 revenue forecast for Motorola (NYSE: MMI) Mobility to $12.2 billion from $13.7 billion and notes that there could be more risk if the company doesn’t come out with a “refresh” in its product line for the second half of the year.

That conclusion is slightly alarming, considering the R&D effort that Motorola has to put into the Xoom, and no doubt the rest of its Android products — the video below gives a glimpse of that.

Suddenly this chatter about Motorola looking at its own OS (or something to put on top of an Android OS) sounds a lot more plausible.


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