Motorola Xoom Disappoints, Analysts Warn Investors To Stay Away

Sales of Motorola's Xoom tablet continue to disappoint, with the company selling 25,000 to 120,000 Xoom units since its launch, an analyst has claimed.

In a note to clients, Global Equities' Trip Chowdry painted a sorry picture of Motorola’s Xoom tablet and Google’s Honeycomb operating system.

According to an article on Fortune, Chowdry claimed that the Xoom has been plagued with abysmal sales and advised Motorola against trying to ‘out-innovate’ its competition, not the kind of advice that a tech company wants to hear.

Instead, according to Chowdry, Motorola should focus on lobbing lawsuits at competing Android device makers. He even provided a chart of which companies to attack and which not to bother with.

Meanwhile, Chowdry clearly seems upset with Google, labeling its tablet-oriented Android Honeycomb operating system as "incomplete," "unstable," with a ‘poor user interface’, proclaiming it ‘dead on arrival’.

According to The Wall Street Journal, Bernstein Research has also advised investors against going for Motorola this quarter.

“We recommend to stay away from MMI this quarter, and to wait for more clarity before taking a position. We recognize the stock is potentially at attractive valuation levels but we remain worried by the lack of visibility on where the company could land on a 2-3 year horizon,” Bernstein Research said.