From Crunchgear

He cited sales “cheaper” smartphones like the the $49 iPhone 3GS as the primary reason for the lackluster performance.

It isn’t the $49 iPhone 3GS that is killing your tablet’s, it’s the lackluster performance. The Xoom is a dog and if it wasn’t for the badge at boot that proudly boasts there is a dual-core processor inside I would have never known.