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Did Motorola Price Its Xoom Tablet Out of the Market?

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You saw the teaser. You read the comparisons. And last night, you finally saw the official ad for the Motorola Xoom tablet.

Creating more of a sappy narrative than showcasing all of the tablet's functions, the spot nevertheless garnered a substantial amount of attention from a massive Super Bowl audience. As it offered a viable alternative to the Apple's obligatory tablet, the ad skewered Cupertino's own Super Bowl commercial and equated the Xoom to something that will shatter the mold.

And considering the superior specs compared to the first-generation iPad, Motorola could be right.

Unfortunately, not many people will find that out. Engadget got its hands on a Best Buy ad for the Xoom, and if the cost is accurate, Motorola just priced the Xoom out of the market.

Eight hundred dollars? There goes the chance of loosening Apple's grip on the tablet market.

Unlike the iPad, there are no cheaper options. A stripped down version of Apple's tablet can go for $499, but every Xoom will be priced at $799 -- no exception. And while the Xoom's superior features may justify the extra cost now, there's little doubt that Apple will debut an updated iPad model soon.

And what happens when the average consumer just opts for the more familiar name?

Added to that, you'll notice a curious disclaimer below the device: "To activate WiFi functionality on this device, a minimum of one month data subscription is required." Both Engadget and Gizmodo have trouble interpreting that line as anything but the Xoom's Wi-Fi is locked down until the user activates data subscription with Verizon.

Speaking with some Best Buy employees, Engadget reported that the Xoom won't be sold without first being activated on Verizon's network so, as the site indicates, "even though you could theoretically cancel the same day, you'll still likely get hit with a one-time activation fee (and possibly one month of data)."

Wasn't Android supposed to be open?

Engadget did mention the number of typographical errors in the leaked ad, so there are still a few feature corrections to be made.

But it's unlikely the seven was supposed to be four.
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