Exhume the Xoom Soon

February 26, 2011 by · Leave a Comment
Filed under: Business, Technology 

After much anticipation the Xoom is out.  Motorola Mobility’s Android based tablet that won best in show at CES.  But is it really out, you know, like the iPad, with no strings attached?  No, my fellow reader (singular).  It seems to have launched in a way that is difficult to understand.   It is arguably the most anticipated device this year and it managed to beat Apple’s iPad2 by a couple of weeks.  And what do they do?  Force users to get a contract with Verizon!  What the …?

I rushed to Costco to get mine (well not really, I went there after lunch).  They had those fake cardboard packages typical of warehouse clubs and I picked one up, went to the register and paid $780 big ones plus tax and ran to the little cage where they store these things. I was told I had to go to the Verizon counter to activate it.  “OK” I said, even though I’m convinced that WiFi is the only way these devices really make sense. So I don’t need a contract. I just don’t want to wait until the WiFi only comes out.  The guy there tells me he will open a contract for me that I could cancel after a month.  The activation had a rebate and I’ll have to pay $20 bucks for the first month of service.  Irritating, but OK, OK, I really want the device. So they proceeded to open a contract and they ask for my SSN.  “What, for 20 bucks? No way!”  to what the guy responded: “Yes, otherwise we can’t sell it to you.”  Weird.  So I said I wanted it without the contract. and he said “no can do”.  “I’d like my money back, please.”  Costco, without hesitation proceeded to a full refund.

Now what kind of a ridiculous go to market strategy is that?  When your main competitor is not only $300 cheaper than you, and one year ahead of you but has a brand so powerful that can sell millions of phones that don’t work if you grip them the wrong way!  What in you mind will possess you to tie your product to a carrier?  Subsidies? I’m sorry, $800 cannot have a subsidy.  Unless Verizon is paying for the 4G-LTE upgrade which will be not only useless but painful.  We all know how that’s going to go:  Erase everything, make sure you back it up, ship and wait a couple of weeks for your devoice to come back.  And, oh, by the way, the 4G-LTE contract that works in 3 cities in the world is $50 more a month. You know what?  Keep your upgrade and your device!  I’ll keep my money.

Jobs and every employee in Apple must be laughing so loud that you can hear them across the US.  Let’s hope Motorola Mobility will back pedal quickly and get it off contract.   Otherwise I anticipate dismal volumes for the 2 weeks Xoom is ahead of iPad2.  Such a shame for such a good looking piece of technology.  The good news is that everybody else that will have an Android Tablet in the next few months will know not to do that.  I guess I’ll have to wait until someone makes one that has no ties.

Or please, exhume the Xoom soon from Verizon’s death grip.

Enjoy.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Losers can get married too

February 13, 2011 by · Leave a Comment
Filed under: Business, Technology 

Have you ever seen a couple walking down the street, holding hands that make you think  that only they could have found each other?  That’s the impression I get when I see Microsoft and Nokia ink a strategic alliance.  Granted, that’s not quite a marriage, but more like dating.  Two of largest technology companies that arrived late to the smartphone party and who are struggling to remain relevant in the fastest growing boom in the Tech Industry since … well … ever, decide to join forces to battle Apple, Google, and their ecosystems.  A daunting task I might add.

This is the deal:  Microsoft has not been able to do anything good in the mobile world even after pouring millions (if not billions) of dollars.  And Nokia, once the giant to follow in the cellphone industry did not see the modern smartphones come.  Together, well, in this blogger’s humble opinion, is no better.  Nokia’s hardware, as good as it is, is just that: hardware.  They have never been able to stand out as a software supplier, areas where both Google, and Apple, the 2 leading forces in the smartphone world, excel at.

On the other hand, Microsoft has not been able to cut the cord.  Still the number one player, by far, in fixed applications, has just been a disaster in the mobile world.  Windows Mobile, arguably one of the first “smartphone” OS’s out there, did not evolve.  And Windows Phone 7, a great approach, is a classic case of “too little, too late”.  While Balmer, Microsoft’s CEO, brags about the eight thousand apps in WP7’s marketplace it remains at least an order of magnitude below iOS or Android.  Carrier’s have dozens of smartphones in their lineup already with access to these apps and users preference, either by cult or anti-cult.  NokiaSoft (or MicroNokia) will have to do the equivalent of pushing a herd of elephants up Mount Everest, one by one, without a sherpa, oxygen, and very little food.

In a letter to Nokia’s associates, Stephen Elop, Nokia’s CEO explained the transition his company will make to dump all activities on Symbian OS in order to adopt WP7 as its main smartphone OS.  I find interesting he used the analogy of a “burning platform” and how people do desperate things in desperate moments.  Kudos for admitting the desperate times and comparing a partnership with Microsoft to “jumping into the icy Atlantic”.  Although it may seem a bit too much, it is more like jumping into the icy Atlantic, naked, in the middle of the night, and picking up drowning friends, with luggage, on the way down.

Granted, these are both outstanding companies with a history of innovation and impressive comebacks (remember Netscape?).  But to pull this one off will require oodles of money, several miracles, outstanding negotiating with the carriers, and great, great products.  They’ve both done it in the past, but will they do it again?  But, given where they both are in this multibillion dollar market, do they really have a choice?  Maybe not.

So good luck in your marriage, hope you both keep your maiden names.  And please do not argue about naming the kids, hire professionals  instead.  Neither of you have a good track record there …

Enjoy.

Facebooktwittergoogle_plusredditpinterestlinkedinmail