Motorola Mobility, a subsidiary of Google Inc (NASDAQ:GOOG), is targeting a larger share in emerging markets with its super cheap smartphone the Moto G, which is powered by the Android operating system.

Moto G

Price of the Moto G

The price of the Moto G is $179 for the 8GB version of the smartphone and $199 for the 16G model without a two-year carrier contract in the United States. The cost of the smartphone is significantly lower than the iPhone 5C of Apple Inc. (NASDAQ:AAPL), which costs $500 without a two-year contract.

Moto G is powered by the Android 4.3 Jellybean operating system, but it will be upgraded to the latest Android 4.4 KitKat OS early next year. Google Inc (NASDAQ:GOOG) designed KitKat to run on lower-end smartphones as part of its strategy to allow manufacturers to build mobile devices for users in emerging markets.

Moto G features

The new Motorola smartphone sports a 4.5-inch HD display and it powered by a quad-core Qualcomm Snapdragon 400 processor. It is equipped with a front and rear camera, and it comes with 50 GB remote storage for two years through Google Drive, the cloud computing service of the search engine giant.

Technology industry analyst Jeff Kagan commented, “This device is likely intended for emerging markets where users want low cost smartphones, but I think it could also be successful in major markets like the U.S. for those same cost-conscious-consumers.”

He added that during the past few years, the trend was about selling top-of-the-line smartphones. However, he emphasized that over the next several years, the trend will be about selling a more affordable smartphone to attract a huge number of new subscribers.

Observers in the technology industry opined that the latest move of Google Inc (NASDAQ:GOOG) will increase the pressure to Apple Inc. (NASDAQ:AAPL) as it refuse to develop cheaper iPhones; instead the company is selling its older versions of iPhones at a reduced price.

At present, there are already 1 billion activated mobile devices powered by the Android operating system worldwide. Google Inc (NASDAQ:GOOG) aims to add additional 1 billion Android users next year.

The IDC recently reported that Android continues to dominate the global smartphone market in the third quarter. It market share increased to 81% while the iOS of Apple Inc. (NASDAQ:AAPL) declined to 12.9% during the period.

Motorola introduced Moto G at an event in Brazil

Motorola Mobility introduced the Moto G at an event in Brazil. The smartphone will be available in the country and other countries in Europe this week. The company will start selling the Moto G in Canada, Europe, Latin America, and some countries in Asia next week. Consumers in the Middle East, India, United States and more countries in Asia will be able to purchase the Moto G early in January next year.