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Why we think Moto E will be priced around ₹9,000 mark and why it sounds a death knell for Micromax and Karbonn

After just 5 days from now, Motorola will be announcing the Moto E in a press event at London. While there are no serious leaks about what price point the phone will be launched at, we think that we've got a formula to derive the price point at which the Moto E might be launched in India.

Moto E: Why we think it will be priced at around ₹9000

Zauba.com is an Indian website that keeps track of all the imports and exports that take place to and from India respectively. According to Zauba:
  • Importing a unit of Moto X (XT1052) from China (the sole country from where the phone is being imported to India) costs ₹18,745. The same imported phone costs ₹23,999 on Flipkart, where it is sold exclusively. Doing a quick math stunt using the Omnibar leads me to believe that the Moto X is being sold at about 128% of the price at which it is being imported. The teak version of Moto X costs ₹20,148 to import whereas it sells for about 129% of the import price at ₹25,999.
  • Importing a unit of the 8 GB version of Moto G (XT1033) from China costs ₹9,219. The Moto G 8 GB version retails for ₹12,499 on Flipkart. That is about 136% of the price at which the phone is being imported. On the other hand, importing the 16 GB version of Moto G (XT1033) costs ₹10,439 while it sells for ₹13,999 on Flipkart. That is about 134% of the original import price.
As we can see, all the different variants of the Moto X and Moto G are retailing for around 128%-136% of the import price. Going by the same formula for the Moto E (XT1022) which is costing ₹6,330 to import, the Moto E should go on sale for somewhere around ₹8,102-₹8,608 ($135-$143). Being a bit on the safer side, we don't think that the phone is going to exceed the 9,000 price tag. Given that the Moto G costs about $210 in India while the same version costs $180 in the US, the Moto E might be priced around $110-120 internationally.

Another reason to believe why this pricing seems true is the tagline Motorola is using to promote the launch - "Made to last. Priced for all." The priced for all part obviously refers to lucrative pricing, while the other part makes us guess that the phone might be water and dust resistant. Also, as someone somewhere pointed out, the E in Moto E might actually stand for "Everyone" i.e. the masses that the phone will be targeting.
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Why Moto E at ₹9k sounds a death knell for local brands like Micromax and Karbonn

Before we start discussing why Moto E can prove fatal to local Indian manufacturers like Micromax and Karbonn, let's have a look at the rumored specifications of the Moto E:
  • 4.3 inch screen with qHD resolution (540x960 pixels at 256 ppi)
    Note: Some rumors actually say the screen is 720p, but at this price point and 4.3 inch screen size, I don't think that is going to happen
  • 1.2 GHz Dual Core Processor
  • 1 GB RAM
  • 4 GB internal storage with support for external micro sd card
  • 1900 mAh Li-ion battery
  • Android 4.4 KitKat
  • 5 MP Rear Camera
First off, 1 GB RAM still hasn't become the de facto standard for phones priced around ₹9,000. 1 GB RAM along with a 1.2 GHz dual core processor will make everything -including  hardcore multitasking- a breeze on the Moto E. No other device below ₹10,000 comes with the latest and greatest from the Mountain View based company. I don't understand what's holding off Indian manufacturers from launching their new smartphones with KitKat, leave alone expecting them to provide updates for the phones they have already launched.

Moto E, like its elder brother Moto G, seems to be an all rounder from the specs. With a promise for updates, brilliant battery life, a decent shooter, and better brand recognition, I don't think Motorola will have hard time snatching away customers who, till now, didn't see any option except Micromax and Karbonn in this price segment.