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I would consider a refurbed original IPad direct from Apple. The 8gb, WiFi-only had been priced at $349, but I see they are out of stock.
So starting money is $429 for 16gb.
I'd have to agree, IMHO the best choice for anyone except a technology enthusiast is a used iPad, and I'm writing this as a Xoom owner, and someone who bought an original 32GB iPad for my girlfriend last Xmas.
The whole ecosystem around the iPad and the app availability makes it a better choice for anyone except hardcore tech geeks. For instance, I only now (like since yesterday) have Netflix on my Xoom because I side-loaded the .APK, and I don't have HBO Go at all yet. In contrast, my girlfriend, who is completely clueless when it comes to technology, has had Netflix since the day she got her iPad, and has HBO Go too. She loves her digital magazines like Martha Stewart Living, but nothing she wants is available on Android.
I'm also not thrilled that the Xoom is much pickier than the iPad about how H.264 is encoded for it. iPad can pretty much play anything smoothly, while certain encoding options must be avoided on the Xoom, otherwise playback is jerky.
For us, most of these issues are only relevant to tablets, not phones, so we both have Android phones and are satisfied with them.
Just want to add that Staples currently has a online coupon for $100 off a tablet (in store purchase only) through July 30. That would put a wifi only xoom at $400 and the asus transformer at $300 (plus tax).
my gf just got one of these and I am having major tablet envy. I have the Kindle Fire, and i like it, but it is def not a full size tablet...
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