From Larry Dignan at ZDNet:> Jefferies analyst Peter Misek on Friday argued that earnings estimates for Motorola Mobility are too high for the second quarter and 2011 because sales of the Xoom and Atrix haven’t lived up to expectations.
Misek said: 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. Yep, totally didn't see that one coming. Not at all. Nope. Never.