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Motorola Cuts Price Of Its iPad 2 Rival Tablet

Motorola has quietly cut the price of the XOOM tablet in the US and in Taiwan, with a similar fall in price expected to come to Europe as well.

Monica Chen from Digitimes reports that the price of the 32GB Wi-Fi XOOM tablet fell from $599 to $499 in the US and by nearly NT$3000 in Taiwan to NT$16900.

There are several reasons why Motorola has made the XOOM more affordable; its most direct Android-based rival, the Asus EEE Pad Transformer had an introductory price of only $399 when it debuted in the US.

Motorola may have made a strategic mistake as well, as the Motorola XOOM is a 32GB model that is often pitted against 16GB tablets; this makes direct comparisons tricky and price differences difficult to justify, especially as most have a microSD card slot.

Then there's the fact that the Google's next generation Ice Cream Sandwich operating system will be paired with new hardware (like the new quad core Nvidia Tegra 3 SoC) and manufacturers will be very keen to get rid of obsolete stock as soon as possible.

Digitimes mentions that Acer is also very likely to lower the price of its Iconia tablet PCs in order to reach its initial target of 2.5 million tablets shipped in 2011. Sources claim that Acer has shipped around 300,000 units until now, with roughly six months to go before year's end.