Omio News Blog

How Motorola priced the Moto G at £135

Google owned company Motorola launched this week the Moto G, from a Brazil press event. This is a mid-range mobile phone, with good specs, only an extremely affordable price – three times less than other devices, with better performance and specs than the likes of the Samsung Galaxy S4 and Apple iPhone 5s.

At the UK event, we asked how could the company make Moto G so affordable?

Mark Randal, Motorola’s Senior Vice President, of Supply Chain & Operations, answered –

“I have two roles: running supply chain for Motorola, and I’ve also been taking care of the Moto G from the beginning”

“And the fact that you have a supply chain guy, running the product, tells you, you have to be supply chain focused”

“We started out, in the beginning, going around the world, and found out the consumer needs”

“Then my team went around the planet, working with as many partners, that we have worked with, for a long time”

“Qualcomm, were a very big part of this”

“Most people don’t realise, this is the Qualcomm 8×26 series”

“We’re the first to bring out the 8×26 [Qualcomm Snapdragon 400]; it was definitely within partnership with Qualcomm”

“It’s a A7 quad-core 1.2GHz chipset: brand new”

“It’s the first time you’ll see it commercially available”

“And then we worked with our screen manufacturers, and then we worked with every different component [manufacture], where we partnered with them”

“We gave them the vision of what we were trying to do”

“We were trying to look at this from a different perspective: fixing a consumer problem that’s out there in the market”

“[component manufacturers] were very supported to take out all the waste”

“We have a process we ran: a very stringent cost of technology”

“Going all the way down, every component, saying: do I need this, do I not need this, how do I reengineer this, how do I design for manufacturability, how do I design for high volume”

“It was definitely a big challenge; but we think the output is really exciting”

He went on to add the company didn’t just ask  suppliers to lower the costs, to make the Motorola Moto G affordable, but it was a partnership with them all, knowing what the company was trying to achieve – which it appears to have done.

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Rob Kerr