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I wonder how much Motorola makes per handset at that price point, which could be slightly concerning for the business overall. Google can get away with tiny mar
by nicholassmith 13y ago
I wonder how much Motorola makes per handset at that price point, which could be slightly concerning for the business overall. Google can get away with tiny margins on their physical devices as they're about pushing traffic back to their services, making more money residually, but Motorola makes money by selling hardware for a profit.
It's great for consumers when price comes down, but that could leave businesses fighting to try get prices down and reduce overall profit, meaning they're unable to throw as much into R&D, or cut back on customer support or a dozen other areas. It's certainly an interesting marketplace at the moment, most manufacturers seem to be slashing prices reasonably heavily.
- tracker1 13y agoMotorola Mobility is now a Google (R) subsidiary...
- nicholassmith 13y agoFully aware, but it's not important as it's being run as a separate business concern so it's a for-profit enterprise.
- objclxt 13y ago> so it's a for-profit enterprise. Or not, given that Motorola has been operating at a loss for quite some time now.
- fpgeek 13y agoThe Moto G launch featured a large number of accessories (covers, shells, headphones, ...). I suspect part of the plan here is to price the phone aggressively so they can make more money on accessories.