Motorola Xoom's Steep Pricetag Baffles Analysts, Consumers

Consumers and analysts continue to be flummoxed by the alleged price points for the Motorola Xoom tablet, which is expected to launch from Verizon Wireless and Best Buy this month.

Android Central said the Xoom, the first computer to be based on Google's Android 3.0 operating system tailored for tablets, will cost $799 from Verizon Wireless, sans contract.

Engadget rekindled the fire Feb. 6 when it received this Best Buy ad, which also hawked the tablet for $799. Now Best Buy's Website lists the Xoom at a whopping $1,199, which can only be an unsubsidized price point.

Adding gasoline to the conflagration is the fact that Xoom buyers will have to grab a 3G data plan to enable WiFi.

For the purpose of this report, let's take what we assume is the subsidized Xoom price point at $799 instead of the $1,199 price point, which is extremely unlikely to be the popular purchase plan.