Motorola CEO reveals plans to launch phones cheaper than Moto G


Motorola’s Moto G is largely considered a budget warrior built with the Moto X as the foundation. The pricing and specs of the device put most budget Android phones to shame. But Motorola is not done with its plans to invade emerging markets with budget devices. The Google company now plans to give it another push and build smartphones with good specs, but ones that are even cheaper than the Moto G.

 

While speaking to TrustedReviews, Motorola’s CEO Dennis Woodside spoke about the hefty price tags on devices these days. He said, "Why can't these devices be $50? There's no reason that can't happen so we're going to push that." So, does it mean the company plans to break the $150 barrier and come up with an even cheaper variant of the Moto G? The Moto G has already earned rave reviews for its performance, build and price, but does it mean Motorola can maintain the same quality at a lower price?

 

For one, it could learn from its experience of manufacturing the Moto G. The company is taking a thin-margin approach to the Moto G, which costs $123 in terms of component and assembly costs. This means there's an operating profit margin of about 5 per cent for each Moto G sold. So the company is not afraid of making sacrifices to get its phone to more corners. But there's more in store, as Woodside said there's a market for an even cheaper phone.

 

"In much of the world $179 is a lot of money so there's a big market at a price point of less than $179," he said. That's a clear hint as any that Motorola has its eyes set on the part of the world where average selling price of smartphones is low, markets such as India.


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