I recently read Winnie’s article on Motorola’s new invention.
After Google’s buyout of Motorola, the phone company has innovated a cheaper phone, made to target a customer segment that is not willing to pay the high prices of a regular smart phone. The “Moto G”, as the phone is called, is priced around $180, making it a cheaper alternative to the iPhone and Google’s higher end smartphones. I agree with Winnie that the Moto G will definitely allow Google to create a new revenue stream as it explores a market that has been unexposed to their brand before. This may be caused by the high prices of previous products that make the product unaffordable with certain consumer’s income. However, with the Moto G brought into the market, Google is able to maintain its brand recognition with its high end products while creating more revenue flow through Motorola in the lower income markets. With specific focus in the South American market, it is anticipated that Google will see great returns with its new low cost focus strategy. This is a smart move on Google’s part, as they are now able to reach a whole spectrum of different users.
Sources: https://blogs.ubc.ca/winnieng/