After BlackBerry Ltd (BBRY), Motorola’s Launches Budget Moto E To Unlock Emerging Market Value


Motorola enters the low-priced device market space with the launch of its Moto E smartphone on Tuesday. The device priced $150 is aimed at targeting the immense potential that emerging markets offer. The move comes following BlackBerry Ltd (NASDAQ:BBRY)’s announcement of a budget device, Z3, launched in Jakarta, Indonesia.


Device Specifications

Moto E, with its 4.3 inch wide display runs on the Google’s Android 4.4 (KitKat) operating system. The phone has dual SIM availability and comes packed with a 1.4GHz dual-core Snapdragon 200 processor, 4GB internal space and 1 GB Ram. The battery is strong enough to run throughout the day without the need of recharge, while the camera is 5-mega pixel.

To Tap Potential In Emerging Markets

The launch of Moto E is an effort to reach up to consumers who are increasingly seeking economical phone and thus, could position the company to exploit the rapidly growing budget smartphone space, which is projected to grow 23.5% during 2014-2015. During an interview with CNBC, Mortorola’s Senior marketing director for EMEA said that Latin America is a very significant market to the company, just like the other emerging markets, which are crucial for its future growth.  Analysts opine that Moto E could allure prepaid consumers in Europe, who currently are required to pay 500 euros upfront in order to get an iPhone. Daniel Gleeson, a mobile analyst at IHS notes that Moto E appears to be a capable phone and indicates that big manufacturers are noticing the lower price points.

Motorola’s launch day coincides with that of its rival BlackBerry Ltd (NASDAQ:BBRY), which has released its latest touchscreen Smartphone, Z3, across Indonesia and Jakarta. Z3 is expected to be priced below $200.  Motorola has released the device across 40 countries, including developed and developing nations and could also make its way to China, post its acquisition by Lenovo. However, it could face a stiff competition from strongly placed local players over there.