Motorola: $30 phone won't cut it in Brazil

Motorola, the vendor that was commissioned by the GSM Association to make two ultra-cheap handsets to help bridge the digital divide in emerging markets, won't be pushing the $30 phone in Brazil at least. Local press reports say Motorola Brasil President Enrique Ussher said instead the company believes it can successfully target the Brazilian market, one of the fastest growing markets in Latin America, with a handset costing Brazilians between $50 and $70 instead. A $30 phone would only be possible if the phone is offered with a lower guarantee, simpler packaging and without delivery--factors that wouldn't be acceptable to Brazilian consumers.

Motorola's comments are in line with what Yankee Group Analyst John Jackson has concluded about the ultra low-cost handset market: Consumers don't necessarily want the cheapest phone, and the lowest-priced handset may actually drive consumers away. Low-income users don't want to be treated as second-class citizens. To wit, Motorola said it will target Brazil's C and D socio-economic classes with he Motofone model, dubbed as a more attractive phone than the Razr.

For more about Motorola's Brazilian plans:
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