Verizon Contract May Hinder Xoom Sales

Verizon Wireless and Motorola announced Tuesday that Verizon will offer Motorola's Xoom, the first Google Android 3.0 device, later this week for $599 with a two-year contract.Customers can also opt for a no-contract price of $799 when the device launches on Feb.24.Intended to compete against Apple's popular iPad tablet, the no-contract Xoom costs $70 more than a comparable iPad.As with other tablets, Verizon will offer data buckets for the Xoom, with 1 GB of data costing $20 per month. While consumers can save $200 in upfront costs for a Xoom, will they take on a 24-month commitment in exchange? It's doubtful.

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