Motorola being owned by Google have a very similar game plan, their Moto G which is a very capable device retails at around £150 sim free, which puts it miles ahead of anything else on the market around that price point and we could be about to see phones become even cheaper if Motorola have their way. Dennis Woodside who is Motorola’s CEO had this to say about the strategy.
“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,” the Motorola CEO says, “We’re going to look at that and just delivering on that value promise is super important. I mean why can’t these devices be $50? There’s no reason that can’t happen so we’re going to push that.”
This along with other evidence we’ve seen, brings us to the conclusion that manufacturers are beginning to shift their focus from advanced economies like the US, Western Europe etc to developing markets like China, and Brazil. because the market in developed economies is reaching saturation point where; a large percentage of the population in those economies have a smartphone, so getting them to upgrade can be a slow process. Motorola and other manufacturers known that they need to reduce their prices if they want to make inroads in the developing economies all over Asia and South America, the only question is; will we see a phone for £30 or will we have to continue paying high-end prices.