Will Moto G launch spark a price war in India ?

As expected the Moto G got big thumbs up from the Indian smartphone buyers. According to Flipkart, the official and exclusive online partner of Moto G in India, 20000 units of the phones were sold within first couple of hours and the e-tailer also witnessed a two fold increase in the traffic on the Moto G launch day compared to normal day.

What makes the entry of Moto G and the response it received from buyers more interesting is the fact that it’s a budget smartphone catering to the sub 15k price range. We must note that this is the same budget category where the Indian mobile phone makers have been concentrating heavily and have managed to create a big footprint for themselves. Until now only companies like Micromax, Lava, Karbonn have been busy releasing phones in this price range with some decent specifications. They clearly rule this segment and we have rarely seen any smartphones from the bigger and much known multinational brands which were worth considering.

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But with the launch of the Moto G, we now have a smartphone which not only has good specifications and performance, but also carries the confidence of a renowned brand. Although Motorola may no more be the key player in today’s smartphone market but there is no denying that it makes some good solid phones and the Moto g is no different and the launch of Moto G will surely change the dimensions of this segment. The local players like Micromax, Lava etc…will have to take a relook at their tried and tested formula and need to be more aggressive with their pricing and features combination. It’s these companies that have been ruling this segment with some decently build and spec’d smartphones as there rarely any competition from bigger brands.

The other important development worth looking forward is the reaction of manufacturers like Samsung, Sony and LG etc. I think the response to the Moto G will surely change the perspective of these brands towards this price range. Till now they have been mostly concentrating on the upper end of the smartphone spectrum but now they have a reference smartphone which carries good performance and features and doesn’t break the bank. They cannot just ignore this lucrative and most busy segment and it would be interesting to see how they will react to this. I wouldn’t be surprised to see some competition to Moto G in near future.

The effects of the Moto G launch are already showing with Micromax cutting price of its Canvas Turbo Mini smartphone by a couple of thousand rupees to match that of the Moto G. This is just a beginning and I see more Indo-Chinese companies following the Micromax way to keep a strong hold on the segment by aggressively pricing their phones. Will this spark a price war? Only time will tell. But whatever may be the outcome it’s clear that the buyers will have the last laugh.


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