March 1, 2011

Motorola Pleased With Early Xoom Sales

Motorola Mobility chairman and chief executive Sanjay Jha said on Monday that the U.S. telecom maker is pleased with early sales of the Xoom.

"They're off to a good start," Jha said of sales of the Xoom, which has been available through Verizon Wireless since Thursday with a price tag of between $600 and $800.

Jha told financial analysts at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, California that the arrival of the iPhone in Verizon stores has had the expected impact on sales of Motorola handsets.

"We were comforted by the fact that things weren't worse than we had predicted," he said.

Verizon began selling the iPhone in February, which ended AT&T's exclusive deal it had with Apple since its release in 2007.

Jha said that in any case he expected the U.S. would increasingly account for less of Motorola Mobility's revenue as the company looks ahead in the future.

U.S. revenue currently accounts for 75 percent of the firm's revenue.

Jha said Motorola Mobility was looking to increase its market share in China.

"Last year we sold two million smartphones in China," he said. "We want to substantially improve that."

The Xoom is the first tablet computer powered by Google's "Honeycomb" software, which is crafted specifically for tablet devices.

The Xoom sells for $800, but the price is dropped to $600 for those who opt for two-year service contracts with Verizon.


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