Google In Position to Change Mobile Market With Low-Cost, Unsubsidized Smartphones from Nexus and Moto

Apple faced a slight public relations setback a few months ago when it unveiled the new colorful iPhone C. For many, the device was supposed to usher in a new age of low-cost Apple smartphone devices. However, the phone ended up being a bit more expensive than people were hoping for, effectively giving Android devices the major foothold in low-cost smartphone tech. Now it seems that Google is going to solidify its position even further with the Moto G.

Google has been trying to become the go-to for low-cost electronics since October with the release of the Nexus 5, a high-end smartphone built by LG Electronics. The price was remarkably low for a phone of its quality, priced at $349 for a 16GB model completely unlocked with no contract. Following that, the Moto G came out with a $179 price tag for an 8GB model, also completely unlocked without contract.

Google has tried in the past to complete a venture like this with the release of the Nexus One. However, that version flopped, as CNET reports, due to Verizon and Vodafone not playing ball. Now thanks to Google's $12.5 billion acquisition of Motorola Mobility, the company is in a position to offer prices that are shockingly close to the subsidized prices offered by cellular services that don't factor in the 24 months of payments made as part of a network service subscription.

By contrast, unlocked pure Android versions of the HTC One and Samsung Galaxy S4 are priced at $600 and $650 respectively. These prices are likely too expensive for those in the market for a new smartphone but are on the lower-income side of the spectrum. Google's outlook on smartphones, as noted by CNET, seems to be to treat them like computers in that they can be bought with an upfront purchase but from there on is up to the user. An unlocked Moto G can be switched to a service provider simply by swapping out the SIM card. While the Moto G cannot quite compare in specs to the flagship smartphone from Samsung, it is nonetheless a comparable price option for an unsubsidized device.

Google appears to be taking a very different approach to low-cost smartphones than Apple by not trying to change the makeup of the mobile market over night. Instead it's using the Moto and Nexus devices to slow play things and will, overtime, perhaps have what it takes to offer competitive pricing and offer low-income customers the chance for high-quality smartphones.

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