Report : XOOM On Way Out As Motorola Prepares For New iPad 2 Rival

Motorola is reportedly cutting down on shipments of its XOOM tablet which was announced only a couple of months ago at CES in Las Vegas.

Digitimes reports that Motorola placed orders of up to 800,000 units for the first quarter of the year with roughly 200,000 units in February and around 500,000 units in March.

But the Taiwanese news outlet says, orders for the second quarter of the year will drop gradually during spring and will only last until [the end of] June.

That still amounts to around 600,000 units spread over April and May, which means that at even if Motorola orders only 200,000 units of the XOOM, it will have equalled the shipment for the first quarter.

There are suggestions that Motorola might follow Samsung's example and come out with a refined version of the XOOM, one with a thinner chassis and a few more tweaks including better battery life and more powerful processor while cutting its price at the same time.

While Apple is expected to sell more than 40 million iPads in 2011, Motorola is expected to sell between three and five million units in 2011, which means that it would have to sell almost one million tablet per quarter for the last two quarters of the year to reach the lower end of its target range.