Motorola announced their earnings today and despite revenue being higher than the previous year, the Xoom tablet is expected to sell only maybe 1.5 million units for the year.

Motorola said on Thursday that it expects to sell 1.3 million to 1.5 million tablets for the full year, after selling 440,000 devices in the just-reported second quarter.

CEO Sanjay Jha claims that with other Android tablets coming out at lower price points are going to be a real threat.

Apple just had their quarterly earnings call and claims that they’ve sold (not shipped) 9.25 million iPads in that quarter alone and stated they’re selling them as fast as they can make them.

If you assume Apple sells that amount every quarter, that’s a total of 37 million iPads sold for the year. That means the Xoom (if it were the only iPad competitor) would only have 4% of the market. Of course, it isn’t the only competitor so it is likely even lower than that.

With mumblings of an iPad 3 coming this September, Motorola better put on their game face if they want to stay in the tablet game.

(via All Things D)