The Motorola Xoom is a fine tablet PC, but it’s too expensive, according to a report from’s consumer PC researcher Sarah Rotman Epps.

“The device is plenty powerful and has some nice design flair,” Epps said in her blog, “It has all the features you’d expect from an iPad challenger (cameras, ports, Flash support, etc.)”

However, the price will be a barrier to strong sales, according to her report. “Tablets are expensive to build, but consumers expect them to be cheap” she said.

According to surveys done by Forrester in January of 2011, the average consumer expects to pay just $257 for a tablet computer. The Motorola Xoom comes in at $800 at retailers like BestBuy and Amazon, or $600 with a two year wireless plan at online retailers like Wirefly.

Epps says the Motorola Xoom is a great product, but calls the price makes it a “fatally flawed pricing model,” adding, “it won’t fly off the shelves this year.

The Motorola Xoom was launched February 24th, and is the first Android 3.0 (also called ‘Honeycomb’) tablet. It has a dual core processor, a gig of ram, 32 gig of storage, a 10.1 inch high definition widescreen, and is 4G LTE capable. A WiFi only version of the Xoom is expected in the near future, with a price point reported to be about $600.