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Motorola is tipped to launch a new low cost “family edition” of their popular Xoom tablet with the new model tipped to sell for $120 cheaper than their current model.The new “family edition” goes on sale in the USA this weekend for $379. This is $100 cheaper than the entry level Apple iPad.

The only significant hardware difference between the family edition and full-price version is that the new Xoom has 16GB of memory, half the amount of the current model.

Technology data firm comScore said this week the iPad accounts for 97% of all Internet traffic from tablets, indicating few others are seeing much use.

Motorola has said it shipped more than 690,000 Xoom tablets in the first half of the year. Chief Executive Sanjay Jha acknowledged in July that his company hadn’t been aggressive enough in keeping down the Xoom’s cost and would be rolling out new tablets that could compete better on price.

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