Cell phones for everyone!

Motorola just unveiled their new i930 smartphone - complete with high-speed internet hookups and software provided by none other than Microsoft. The smartphone has a price tag of $500 attached to it, which makes it pricier than most peoples' cell phones as is. But there is a market for ridiculously expensive cell phones, especially for those whose cell phones double as their PDA. Think it's too expensive? You're in luck.

Just yesterday, Motorola announced their plans to start carrying more inexpensive phones (around $30 each) for developing countries. (Nokia's phones in these similar markets cost around $120 each). Back in February, Motorola "won a similar contract...to provide $40 phones to emerging markets," according to Motley Fool's Alyce Lomax. Motorola's move into these emerging markets has huge potential for growth in the coming years. While global expansion is usually tied to China or India these days, it's nice to know that some companies still care about the underdog countries out there.

Nokia, too, is trying to build up their presence in developing countries. But their phone sells for over $100. How would people in these countries pay over $100 for the luxurious commodity that is the cell phone? Motorola's two alternatives makes owning a cell phone much more affordable.

Motorola's two announcements, made a day apart, really only signals one thing - they're expanding aggressively. They must still be daydreaming of the days when they had the #1 market share. It's obvious they want it back.

With Motorola's P/E at 20.15, it trades at a premium to the cell phone market share leader Nokia (P/E 16.99). However, with Nokia trying to sell expensive cell phones to the developing countries, I'd have to say their strategy is somewhat off. It seems like Motorola understands that the bottom line may have to be cut, in order to get into markets with potential growth. And for that, I'd pay the additional premium for Motorola.

The super expensive phone, the super inexpensive phone, the Razr, the Rokr (with Apple's iTunes) - there's a little bit for everyone.

This article takes information from: Motorola moves upscale with gadgets by Scott Banerjee, MarketWatch and Motorola goes on the cheap by Alyce Lomax, Fool.com