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motorola xoom demoRaise your hand if you thought Motorola’s Xoom tablet was selling like gangbusters. I didn’t think so.

So it comes as little surprise to hear that Motorola may have sold only 100,000 Xooms in its first two months, according to analysts from Deutsche Bank, who based their estimates on the number of Android 3.0 devices appearing on the Android Developers site.

While a stylish and powerful tablet — reviewers seemed to agree that it was the most iPad-like Android tablet yet — the Xoom simply has too much going against it to find success. At $799 without a contract, it’s one of the most expensive tablets on the market — unless you’re willing to deal with a contract and pay $599 instead. Motorola also recently launched a $599 Wi-Fi only Xoom that may help with future sales.

And then there’s the iPad 2 factor: Apple’s second tablet launched only a few weeks after the Xoom, and many potential Xoom buyers were likely tempted away by its slimmer design. The first iPad sold 300,000 units in its first day, and analysts estimate that the iPad 2 sold 1 million units in its first weekend.

I wouldn’t go as far as to call the Xoom a dud, like some analysts. Motorola knew it would have to compete with a revamped iPad, and it must have realized the Xoom wasn’t exactly price competitive. But Motorola gets some credit for delivering the first Android 3.0 tablet to consumers. And over time, sales may pick up as the price drops, Android 3.0 gets further refined, and Motorola adds 4G functionality to the tablet.

Deutsche Bank also says that Xoom sales are in line with its earlier estimates of 50,000 units in the first quarter of 2011 and 150,000 units in the second.

Via Boy Genius Report

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