When I first blogged about Motorola Mobility (MMI) a few months back I was very bullish of the prospects as they split the company in half and MOT became MMI and MSI. That bullish blog proved to be correct as MMI was rock solid rallying form $25 to $36 in a few short weeks. Then a week or so ago I posted a blog where I became bearish after pricing for the XOOM was posted on Best Buy’s website, $800. When I first saw the post on engadget.com I almost lost it, how does Motorola plan to compete with Apple with that pricing.
MMI pulled back on the initial reaction but had been behaving fairly well the last few days and it was starting to feel like getting back into the pool was the right trade. That was until this morning when I got an email from Business Insider that Best Buy is now taking pre-order’s for $1,199, I can only ask who the hell is making decisions at MMI because it is a disaster.
I will be looking to short MMI tomorrow morning as I believe Traders will take this news negatively and there should be more pressure on the stock.
Below is the article from Business Insider:
This is a fairly high-end version of the tablet with a 32GB hard drive and 3G. The Xoom also the first tablet running Android 3.0, the first version of Google’s OS tailored specifically for tablets.
But $1,200? That’ s not just way more than rumoured. That’s not just way more than the comparable iPad, which costs $729.
That’s the same price as the 11-inch MacBook Pro, which is Apple’s top of the line portable computer — a full-fledged notebook computer running a full-fledged operating system and a full complement of apps. It’s more than the Macbook Air, which starts at $999. It’s more than most ultraportable Windows notebooks. That’s nearly FOUR TIMES the price of the cheapest netbook PCs on the market.
It even makes Windows tablets look cheap by comparison.
Motorola must be living on a different planet from the rest of us: earlier this month the company decided to charge$500 for Atrix, which is basically a glorified mobile phone dock with a screen.