Motorola officially unveiled its so-called ‘budget’ Moto G handset this afternoon but the news has been dampened by reports the company may be struggling.
The £135 Moto G is a 4.5-inch handset with a 5MP camera running the latest version of Android.
Google-owned Motorola has also taken a lead from Apple by offering the phone in a variety of colours, with interchangeable cases – or Motorola shells.
It is set to be a cut-price alternative to the firm’s Moto X handset, released in August, yet reports claim the firm has sold just half a million of these high-end phones meaning there’s a lot resting on the success of the Moto G.
By comparison, rival Samsung shipped more 10 million Galaxy S4s in the same period.
This may be due to the fact Motorola’s Moto X is only available in the U.S., while Samsung’s model is available worldwide, yet the Moto X is $100 cheaper than the $699.99 S4.
When compared to these Moto X prices, the £135 Moto G is ‘cheap’, yet there are other similarly priced smartphones on the market, including the Samsung Galaxy S3 Mini, the HTC Desire X and Nokia’s Lumia 520 with similar features.
The Moto X’s poor sales follow reports in the summer in which Motorola announced losses of $342 million in just one quarter – a 34 per cent drop compared to same period in 2012.
The budget Moto G handset was unveiled by CEO Dennis Woodside during an event in Sao Paulo, Brazil.
It has 1GB RAM, runs on a 1.2GHz quad-core processor and comes with either 8GB or 16GB of storage built in.
Speaking at the event, Woodside said: ‘Most people in the world can’t afford a $500 or $600 phone.
‘The average price is close to $200 and the experience of these devices is really, really bad.
We think the industry should deliver more value, we think people deserve better. So that’s why today, we’re introducing Moto G.’
The Moto G has a curved back, designed to fit comfortably in the user’s hands, and the edge-to-edge display as seen on the Moto X.
In what seems to be becoming a trend, the majority of the Moto G’s details were leaked before the announcement, including a post appearing on Amazon earlier this week.
The leaks revealed the size and price of the device, as well as hinted at the different coloured cases.