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You Won't Believe How Much Motorola Xoom's Components Cost

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We've already marveled at the actual cost of iPhone and iPad parts -- $187.51 and $245, respectively -- and noted each device's hefty markups for labor, assembly, research, development, shipping, etc. So this week, when UBM TechInsights took apart the Motorola Xoom -- currently priced at $800 without contract -- to give an estimate of the cost of its components, we expected to see a number that's more reflective of the higher price.

Turns out, that didn't happen. UBM's estimate of the cost of the Xoom's components: $278.

Compared to the first-generation iPad, the higher-powered components come in at a slightly heftier price. But even considering labor and research, to charge $800 for an unsubsidized Xoom is mind-boggling and widely regarded as market suicide.

Speaking with the Wall Street Journal, IDC analyst Susan Kevorkian discussed the Xoom's exorbitant price tag. "We do think it will hurt them." Adding, "Device makers who would otherwise have a good shot at this market are effectively pricing themselves out of it from the get-go."

Making matters worse, the Xoom still isn't equipped to run Adobe Flash on the device -- a major selling point against the iPad -- and 4G is still "forthcoming." For $800, the Motorola Xoom desperately needed to have everything finished by its launch date.

And considering we're minutes away from a newly revamped iPad -- one that's presumably priced like the old iPad -- can the Motorola Xoom even recover from that?

(See also: Steve Jobs Stuns the Crowd at iPad 2 Event and INFOGRAPHIC: Apple iPad, Motorola Xoom, and Other Tablets Compared)

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