Can compete on price? The Xoom is $70 more than the iPad @$799 for the 32G 3G model. The iPad is $729. That $70 gets you dual cameras, 1G of ram, dual core processor, etc. A version without 3G is being released for $599, the exact price of the iPad it correlates too, most likely still outspecing the iPad 2. And this is Moto who doesn't have the resources to get the component costs a computer company does that buys in larger volume like Dell, HP, Toshiba, all coming out with tablets.
If you think Apple's competition isn't ready to go for the jugular you're crazy. The only competing device that was really a fail was the Galaxy Tab. Which now has been marked down very cheap nearly everywhere. I think Samsung learned a lot from that venture, and it will be interesting to see if the new 10" Galaxy will price better, or if they learned not to sell exclusively through wireless companies. These devices need to be in the main retail sector: Best Buy (not via mobile), Target, Wal-Mart, etc.
Toshiba has been really pulling out the guns in their marketing against apple. (thetoshibatablet.com) I'm betting they attack on price too. And don't forget, Apple buys all their components (with the exception of processors), they don't manufacture them or buy the volume of some companies. I don't think you understand how purchasing works. And Apple buys many of the parts they use (like displays) from companies who are actually about to release tablets. I think if you can afford to sell Apple parts, you're probably able to get them for yourself cheaper since you wouldn't sell Apple those parts if you weren't making money doing so. That's another caveat. Apple's competitors still get a benefit to the iPad's success selling parts, even if the profit is smaller.
Of course the iPad 2 will sell like hotcakes, and any Apple loyalist will pay the Apple tax gladly. But don't be naive. The tablet wars haven't really even begun just yet. No one is giving release dates or pricing... I think they're all waiting for the iPad 2. After next week, I think we're going to see all the competition come out with guns blazing.
Nah. The iPad 2 will sell like hotcakes. Android tablets can't compete on price like their phones do on the carriers. Where they are practically given away. In some cases ARE given away. Lets keep in mind these are rumors btw. people act like because Engadget said it then its set in stone. First they report sd slot and all that from unreliable sources then they tear down their own strawman. Typical Engadget laziness, sloppiness, and page view/linkbait wh*ring. 512MB ram is fine. 1GB may make people feel better but its not needed.