Low price Motorola Moto G puts pressure on competitors’




The low price of Motorola’s Moto G smartphone may put competitors under pressure to also cut prices. That says the analyst firm that has worked out that Motorola smartphone selling almost at cost.

The amount include Samsung earns per unit is much higher than its Motorola Moto G . The margin on the Moto G, the percentage of the sales price that the manufacturer maintains and ultimately the cost of production and distribution pulls off is less than 5 percent. Samsung makes some devices more than 25 percent margin, Apple is even there with margins above 30 percent, says an analyst at Sanford C. Bernstein & Co. against the Wall Street Journal.

Because Motorola keeps the margins so low, increase the pressure on competitors to also cut prices. Virtually every manufacturer has devices with similar characteristics as the Moto G are in the lineup, but currently sells for higher amounts. Where the Moto G for under 200 euros will be in the shops cost the somewhat similar Galaxy S4 mini more than 300 euros, while for example the HTC One mini wants. more than 350 euros Sony’s most comparable device Xperia SP cost around 260 euros, while Huawei for its Ascend P6 asked around 270 euros.

Smaller margins often means that more devices are sold with less profit is made. Currently, Samsung is the only one among the manufacturers who make many quarterly profit on sales of Android smartphones. The rest makes little or no profit or even loss runs on the sales of smartphones.

The Moto G is scarcely available in the Netherlands, but very soon would begin selling the Motorola smartphone. A major retailer What the price will be in the Netherlands, is still unclear, but the smartphone will cost around 170 euros in Germany.



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