Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
I would not be surprised that Apple will continue to experience shortages of the iPad 2 until late this year due to the fact they will have trouble getting components from Japanese suppliers for the tablet. We could end up with the situation akin to the first year of Nintendo Wii sales--high demand and no product available unless you're really lucky.
 
Apple does not have to hold them back to increase demand, the demand is and was already there. If they are "holding back", its probably due to the foreign launches happening in the coming weeks. So no great conspiracy.
 
Xoom WiFi is not more expensive than the WiFi iPad.
...People want a tablet device to use. But they aren't wedded to a platform. As soon as the WiFi-only Android tabs flood the market, game over for Apple at least as far as market dominance is concerned.

Except that most consumers will first see $499 for the iPad and $599 for the Xoom. Not all of them want to buy the 32G version.

Also I disagree that people "want a tablet device" to use. Right now they want an iPad to use, not a knock off (I'm not saying the Xoom isn't worthy, just to regular consumers' eyes the Xoom's no more than an expensive iPad knock off)

The Xoom might have a chance if it's cheaper or much better made, but it's more expensive at the lowest price, and although it's subjective I think we can agree that most general consumers will find the iPad 2 to be significantly more attractive and better designed, which is a big thing.

Yes I do think some of them will pick up the Xoom to try. But I highly suspect the vast majority of people will wait until they can buy "the real iPad," not some other tablet. That's the big difference between phone and tablet methinks. People don't need to buy tablets and Apple got the head start. People who wanted to buy iPods mostly bought iPods, not some iPods-lookalike from Microsoft, Sony or Samsung. Of course there were many people who bought other MP3s but Apple's dominance was never challenged.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.