Motorola Xoom
Early sales of the Xoom have been weak, according to analysts. Motorola

Less than a week after Apple's successful launch of its newest iPad, Motorola has responded with the announcement of a Wi-Fi only version of its Xoom tablet.

Running for $599, the 32-GB Wi-Fi version of the Xoom will be available on March 27th. Two hundred dollars cheaper than the original 3G-version of the Xoom, the Wi-Fi version is a hundred dollars more than the cheapest version of Apple's iPad 2.

Price has remained a major issue for Motorola's Xoom, which has suffered due to its relatively high price point. Sales for the original Xoom model have been tepid, according to Jefferies & Company analyst Peter Misek, who recognized the Xoom's failure to meet what he called the magic price point of $500.

With the Wi-Fi version of the Xoom, Motorola has missed that magic price point once again, giving Apple the edge. But with Apple struggling to fulfill demand for its iPad 2, the questions remains whether frustrated would-be iPad users will flock to Motorola's readily-available alternative.

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