Motorola Reports Poor Q2 Results, Admits Xoom Tablet Overpriced

Motorola Inc has reported poor sales of its range of devices, tablets in particular, during its earnings call for the second quarter that took place on Thursday.

According to Business Week, Motorola Inc has reported dismal sales of its tablet computer, the Motorola Xoom which was launched amid huge expectations, with only 440,000 units sold in the second quarter ending June 30th of the current financial year.

In its quarterly statement, Motorola revealed that the company shipped nearly 11 million gadgets during the quarter, of which 4.4 million were smartphones and 444,000 were Xoom tablets, to retailers. Interestingly, critics have raised doubts about how many of the 444,000 tablets were actually sold to the customers.

The number is a big concern for Google that powers the Xoom with its Android operating system as Apple sold 9.25 million iPad tablets during the same period.

"We now recognize where the price points are. For the fourth quarter we'll launch very good, new tablets and we'll have a good quarter," Motorola’s Chief Executive officer Sanjay Jha stated as he acknowledged misjudgement on the part of company for the price tag for the Xoom given the times, with the smartphone and tablet market growing tremendously.