In the recently announced earnings, Motorola Mobility ( MMI ) announced that it shipped more than 250,000 Xoom tablets in the first quarter of 2011. In our previous note titled Discouraging Motorola Xoom Sales Could be a Drag on Stock , we discussed how several analysts had forecast lower estimates for the Xoom and looked at potential downside scenarios. While Motorola Mobility managed to beat those estimates, its sales still pales in comparison to Apple's ( AAPL ) iPad sales. Apple sold around 1 million iPads in the first weekend of its launch last year. Motorola also faces stiff competition from Research in Motion's ( RIMM ) PlayBook, and new products from companies like Samsung, Dell ( DELL ) and LG.
We currently expect the Motorola Mobility to sell around 4 million Xoom units this year, and we expect this to grow to 5.2 million for next year. You can explore upside and downside scenarios to this forecast using the chart above. Our price estimate suggests around a 7% upside to the current market price.
Editor's Note: An earlier version said sold instead of shipped 250,000 Xoom tablets.