Rumor: Motorola to cease XOOM production at the end of June [UPDATED]

Motorola's XOOM may have only launched around a month ago, but according to a new rumor, production of the tablet may cease after this June. Anonymous sources speaking with Digitimes claim that, while Motorola will likely order around 400,000 or 500,000 XOOMs for the month of March, that number will gradually drop to around 300,000 units in April and below 300,000 in May. By the time June rolls around, the report says, production of the XOOM will stop entirely. The reasons for the alleged drop aren't clear, but Digitimes' sources claim that Moto is unsure of the tablet market and where it stands in it, although the company may decide to launch a new version of the XOOM in the second half of this year after examining the situation.

This news comes as a but of a surprise, especially since the XOOM is expected to meet its estimated shipment numbers for the year, but the decrease in production would make sense if Motorola decided to launch a successor to the XOOM later this year. A new XOOM may be a a bit of a disappointment to those early adopters that have already picked up the original model, but if Motorola can address the issues that some people had with the first one, especially the price, then a revised version could make sense.

UPDATE: Moto has responded to the rumors, saying that "The Digitimes article is NOT accurate. Motorola Mobility is planning to manufacture and sell the Motorola XOOM beyond the second quarter."

Via BGR, Digitimes, Phandroid

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