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Analyst Peter Misek of Jefferies & Company tells ZDNet that Motorola's tablet, even with its higher-resolution screen and faster processor than the Apple iPad 2, is not exactly flying off the shelves:
"Xoom sales have been underwhelming. While marketing has just started we believe MMI will likely have to cut production if it already has not done so. We believe the device has been a bit buggy and did not meet the magic price point of $500. We believe management knows this and is hurrying development and production of lower cost tablets. Importantly we believe management will likely have to make the painful decision to accept little to no margin initially in order to match iPad 2’s wholesale pricing."