Motorola Wins New Cheap Phone Deal with $30 Model

Reuters.co.uk reports that according to the GSM Association, "Motorola will sell more than 6 million mobile phones for less than $30 each in a new programme to bring cheap handsets to developing markets."

This is part of the Emerging Market Handset (EMH) programme in which "ten operators in developing markets have promised to buy about 6 million of the two models Motorola will submit to the programme, including the new C113a model which is exclusive to the programme and the C113."

"You're definitely looking at single digit margins, but Motorola will use the ultra low tier to attract consumers to its brand and eventually sell up more expensive models," said Gartner analyst Ben Wood.

Alan Hellawell at Lehman Brothers added, "We had anticipated pricing of $33-$35, and are surprised to understand that half of the 10 bids submitted were below $30."