Motorola has slashed the price of XOOM tablet in US $499 and in Taiwan to NT$16900 putting it at the same price as its rival, 16 GB WiFi iPad2. It is also offering free wireless keyboard and mouse with every Motorola purchase in the UK.

Digitimes reports that the price of the 32GB Wi-Fi XOOM tablet fell from $599 to $499 in the US and by nearly NT$3000 in Taiwan to NT$16900.

The reason for cutting price of the tablet could either be because of poor sales or to make XOOM more affordable as its Android powered rival Asus EEE Pad Transformer had an introductory price of only $399 when it debut in the US.

Unlike most of its competitors —16 GB tablets, Motorala XOOM is a 32GB model along with other specifications — 10.1-inch 720p display, front and rear cameras, and a dual-core 1GHz processor.

With the numerous issues that the tablet has, carrying a half baked Honeycomb platform, the price cuts won’t boost its sales to a large extent.

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