Motorola Big Bet on sub-$50 phones

Motorola is betting big on the sub $50 phones in order to achieve growth, profits and market share in the hot markets like India, China and South East Asia, according to a report inWall Street Journal. “Please do not confuse low price with profitability,” Motorola CEO Ed Zander said. “We know that we can make money on these devices….We can be profitable [and] we can grow market share.” The question is when? Still it will clearly help company regain some market share, just like it did for Nokia. I think the sub-$50 phone is going to be a big business, but will volumes compensate for razor thin margins?

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