In a recent CNET article, it describes how the Xoom has had little impact on the tablet market and attributes this failure in light of the outstanding success of the iPad to the Apple Stores and their focus on the tablet.
I disagree. I think the Xoom fails because it tries to do what the iPad does but not be the iPad. It's roughly the same size and same specs and almost twice the price. Why would anyone shell out almost $300 dollars more for a product that's just a mimic of the iPad? Better to go with the original.
The only tablet that I've seen that differentiates itself from the iPad is the Galaxy Tab 7 inches. It's used in Spain's EOI (Escuela de Organizacion Industrial) a prominent Business School precisely because of one of it's advantages. It's open-source. But I'm sure the fact that it's cheaper than an iPad had something to do with it too.
The 7-inch tablet is much smaller than the iPad allowing it to be used in a more portable way. In education I think, open source has an edge, and the small size might be useful for children who may find the iPad unwieldy.
The trick for success (in the Tablet space) is not aping the iPad, but being what the iPad is not. The iPad is not perfect, but trying to copy the iPad would leave you with price as the big determinant and price, is (this time) one where the iPad dominates and probably will for the near future.
The Xoom has no chance as a would-be iPad for more money.
[Ed. This past weekend I went to Best Buy and they had the Xoom listed for $800, today I saw it priced $600 at Staples (after I did the original post). Looks like Motorola got that it was priced to high and lowered. We'll see what happens thought I still see it as a long shot. The Xoom is too similar to be anything but an iPad wannabe for the moment.]