The Motorola Xoom was just recently released and has received a mostly positive reception. There are now rumors that Motorola is already working on a second generation Xoom that may be released as early as the end of 2011. It seems that Motorola is reducing the number of tablets being requested each month from a high of 500,000 in March. While the company will be receiving nearly one million units in the first quarter, orders placed for future months drops to 300,000 and according to DigiTimes, there are no orders in the pipeline past June.
A new product release this quickly into the cycle would be very unusual. It's also unknown what new features Motorola would look to add to a new Xoom, although it's possible that the company is simply looking for ways to reduce component costs and streamline production and not release an actual upgrade to the current tablet. The article mentions that the demand for a non-iPad tablet is still an unknown at this point in time, so it's also possible that Motorola is reducing output due to lack of demand. However, based on the constant advertising of the Xoom it's hard to believe that the company will abandon their product this early in the game, even before the WiFi version has even been shipped.
We will keep our eyes open for any other clues that explain the drop in order requests and are open to any theories you may have.