Motorola's new Moto E launched: 4.5-inch display, front camera, Android 5.0 Lollipop, 4G; prices start at $120

New York: Motorola is updating its low-cost smartphone, the Moto E, as it targets first-time smartphone buyers worldwide.

Among the improvements over last year's model: The camera now has auto-focusing, whereas the older model had a fixed-focus lens that didn't compensate for how far away the subject was. The new Moto E will also have a front-facing camera for selfies, though images won't be as sharp as the 5 megapixels on the rear. There's also a model with 4G cellular connectivity. Last year's model was available only for slower, 3G networks.

In the US, Motorola will target prepaid customers, as well as those looking to buy children their first smartphones. The 4G model will cost $149.99 in the US, while the 3G will go for $119.99, both without contract requirements. The screen measures 4.5-inches diagonally, slightly larger than before. In India, the phone will cost around Rs 9,287 for the 4G model while the 3G will be around Rs 7,430.

The second-gen Moto E runs on the latest Android 5.0 Lollipop software and for the first time Motorola has brought in personalised software experiences with Moto Display for notifications and Moto Migrate feature for easy transfer of important data like contacts, photos and videos to the new phone.

Motorola, which Lenovo Group bought from Google in October, has been trying to set itself apart from other phone makers by selling cheaper phones that have some features found in higher-end products. For instance, all of its phones use Corning's Gorilla Glass for durability.

In the official Motorola blog, the company gave out further specifications of the phone. Users have an option of customising the device with interchangeable Motorola Bands and Grip Shells. The new Moto E features a 2390mAh battery, a 1.2GHz qualcomm snapdragon processor and advanced graphics.

"Even in developed markets, a large percentage of the population isn't on a smartphone," Rick Osterloh, Motorola's CEO, said in an interview. "This category represents the biggest growth area."

Motorola, which is headquartered in Chicago, announced its new phone Wednesday ahead of next week's Mobile World Congress in Barcelona, Spain. Samsung, HTC and others are expected to unveil their spring lineups at the show. Sony also announced a budget phone this week for $146, though there's no plan to sell it in the US. LG announced four mid-range smartphones.