MOTOROLA, Google’s mobile handset division that reported a $248m (£154m) loss last quarter, is betting that low-cost smartphones will rejuvenate its struggling business.
The Moto G is Motorola’s latest effort to take back the consumer smartphone business, but it’s a device that shuns the high-end price tag of competing devices from Apple and Samsung.
“You probably paid five or six hundred dollars for your smartphone, most people in the world can’t afford this,” said Motorola chief executive Dennis Woodside yesterday, adding “We think industry should deliver more value for the consumer’s dollar.”
The new Moto G, available in a few weeks, will retail for only £135 without a contract, a fraction of the price of Apple’s £549 iPhone 5s or Samsungs £499 S4.
Motorola insists that its new device does not compromise on quality either with its quadcore processor and high quality screen.
“It’s a smartphone with a premium experience at a fraction of the cost,” said Woodside.
Even if the Moto G is successful it may not allow Motorola worldwide success, as Motorola’s ownership by Google will force it to sit out of China, the world’s largest smartphone market.