Initially forecasted as the next challenger to the Apple iOS, the Motorola Xoom tablet and Atrix smartphone has performed below expectations.

Pacific Crest analyst James Faucette informed Forbes Magazine that sales figures of the Xoom and Atrix were “well below forecast.” However, Motorola has not yet released its official figures. Ironically, the Xoom was forecasted as the device that will take Motorola out of its slump.

Faucette attributed the lackluster performance of the two devices with the strategic release of the iPad 2 and the presence of cheaper Android phones in the market. Aside from that, there were a lot of flaws that worked against it. Apple announced the release of the iPad 2 at the same time Xoom were rolled out to the stores. As a result, it became big and clunky when compared to the iPad 2. It also had some issues to contend with such as the lack of Flash support.

Another issue that contributed to its disappointing performance is the price. In the absence of a 3G data contract, the 32GB model is worth $800. With a contract, its retail price is $600. The cheapest iPad 2 is worth $499, the 32GB model is worth $599 and the 3G model costs $729.

In the case of the Atrix, the price tag is similarly the same issue that affected its performance in the market. With AT & T as its provider, the Atrix comes with a 4-inch screen and a dual-core processor, which makes it pretty powerful for a smartphone. Although the cost can be comparable to other Android phone models and the iPhone, the $199 cost might just be too expensive for most consumers.

The Atrix comes with a $500 laptop dock that adds a screen and keyboard to the phone which makes it similar to a mini-computer. Most online reviewers have not been fond of the laptop dock which does not help the cause of the Atrix. Likewise, it runs on an older version of Android.

Unless Motorola does something and makes the necessary adjustment, it looks like Apple will maintain its dominance in the tablet and smartphone market.

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