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Motorola announces price drop for Wi-Fi Xoom tablet

Teaser
The Xoom tablet gets a much needed $100 price drop with a free Portfolio Case thrown in for good measure

Through a tweet earlier Wednesday, Motorola has officially announced a $100 price drop for the Wi-Fi Xoom model. This brings the current tablet to a more wallet-friendly $499 price point and puts it directly against the HTC Flyer, Apple iPad 2, RIM PlayBook and Samsung Galaxy Tab 10.1.

Why Motorola decided to drop the price was not mentioned, but a likely reason could be due to the increasingly intense competition the Xoom has been facing ever since its launch back in February. The Xoom had a hefty price point when it first launched while nowadays most new tablet releases aim for the sub $500 MSRP. Even the upcoming Vizio tablet can currently be pre-ordered for under $400.

Another likely reason for the price drop could be due to the poor sales of the Xoom tablet. Recent reports claim that the PlayBook, which was released 2 months later with modest sales, was able to outsell the Xoom tablet.

As the first major tablet to launch with Android Honeycomb pre-installed, the Xoom was expected to have more brisk sales and really boast the tablet-specific Android operating system. Hopefully, the price drop can bring the Motorola tablet back to its feet.

Check out our full review of the 10.1-inch 3G Xoom here.

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Allen Ngo, 2011-07- 6 (Update: 2012-05-26)