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Motorola Unveils Budget Smartphone, Aimed At World

US-MOTOROLA-MOTO X
Motorola's Moto X is displayed in many different colors as the American-manufactured smartphone is unveiled August 1, 2013 at a news conference in New York. The Google-owned company said users will be able to customize a number of the parts on the Moto X, including various colors and materials such as wood. AFP PHOTO/Don Emmert (Photo credit should read DON EMMERT/AFP/Getty Images)

NEW YORK (AP) -- Motorola is making a cheaper smartphone aimed at emerging markets and budget-conscious consumers in the U.S.

The company, which is owned by Google Inc., says the new Moto G phone runs recent Android software and has processors, screens and other components approaching what's found in many high-end phones. But it's just a third of the price.

The phone starts at $179 without a contract requirement. Contract-free prices for leading phones typically exceed $600. The starting price is for a phone with 8 gigabytes of storage. Most phones have at least 16 gigabytes. Moto G costs $199 for a 16-gigabyte version.

Moto G will have a removable back to allow for customization. Motorola's flagship Moto X also allows customization, but it must be ordered in advance and can't be changed.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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