Smartphones are considered as one of the necessities once when we step out of our homes. It allows our generation to be more connected with each other, more productive as never before, through providing applications as simple as a alarm clock or something as complex as a banking system. However, smartphones on the market are expensive due the high manufacturing costs due to its multi functionality such as touch screen, camera etc. Popular smartphones on the market such as the iPhone costs as much as $500.

Motorola, the forgotten phone company before smart phones emerged, has decided to take a cost leadership strategy to customers who seek for low cost smart phones. The Motorola Moto G, is a smart phone priced at $179, a price significantly lower than the ones produced by Apple and Samsung.

In my opinion, I feel that Motorola’s idea of producing a low cost smart phone is good strategy as it targets users, such as teenagers and people with low budgets. However, Motorola will not be selling in China, which takes in account of more demand of smart phones than in North America and Europe. While in my opinion; Motorola has a great strategy, but In order to expand its customer segments, Motorola should target Asian markets.

http://www.bnn.ca/News/2013/11/13/Googles-Motorola-seeks-comeback-with-low-cost-smartphone.aspx