A 4.3-inch Android KitKat phone for just $130 or £80 (hands-on)

The Motorola Moto G was my favourite phone of 2013. Not because it had the best Full HD display or most powerful quad-core processor, but because it offered a well-rounded set of specs for a price that blew its competition clean out of the water. Now, Motorola has an even cheaper mobile that means even the most cash-strapped of phone fans can get their hands on the latest Android software.

The Moto E is a 4.3-inch phone, boasting a dual-core processor, 1GB of RAM, a 5-megapixel camera and the latest version of Android, 4.4.2 KitKat. KitKat aside, these are far from top-end specs -- it lacks 4G LTE -- but it is set to be an extremely affordable phone.

Here's the dirt-cheap, KitKat-running Motorola Moto E (pictures)

+10 More

See all photos

Motorola told CNET the Moto E will cost around $130 off-contract when it goes on sale today in the US, and around £90 when it hits the UK on 19 May -- although UK network O2 will sell it for just £80 on pay as you go. It'll be available globally, including Australia, but Motorola is yet to give wider pricing information. When it goes on sale today in the US, and around £90 when it hits the UK on 19 May.

If you have a few more quid or bucks to spare, you may be interested in the new improved Moto G, now with 4G and microSD, also announced today. You can find our first take of the new 4G Moto G here.

Motorola's first launch event for the Moto E was in India, and it will be on sale at launch there and in Brazil, which highlights Moto's particular emphasis on emerging mobile markets, rather than on areas where flagship phones such as Samsung's Galaxy S5 dominate.

Display and processor

At 4.3 inches, the Moto E has a marginally smaller display than the 4.5-inch Moto G and it has a slightly lower resolution too. It packs 960x540 pixels into its screen, which results in a pixel density of 256 pixels per inch. While that's slightly less than the G's 326ppi, it's a decent amount, particularly for such a cheap device. By comparison, the LG G2 Mini's display has 234ppi, and that phone costs over £200.

We did notice, in our brief hands-on time, that the Moto E's viewing angle wasn't great -- tilting the phone away from our line of sight resulted in some colour distortion.

Although side-by-side against higher resolution phones you may be able to see the difference, I expect the Moto E's display to be more than adequate for the everyday tasks this phone is designed for. If you're expecting to play the latest 3D games in glorious high definition, an ultra-budget phone really shouldn't be on your wish list.

The processor too has taken a cut from the Moto G in order to keep costs down. It's packing in a 1.2GHz dual -- rather than quad -- core chip, a Qualcomm Snapdragon 200 to be specific. It does, however, come with the same 1GB of RAM. I won't know exactly what sort of performance this silicon will provide until I load up my barrage of benchmark tests in the full review, but using the Moto E for a short time, I didn't notice any stutter when swiping through its Android interface.

I can say with some certainty, however, that games like Asphalt 8 and intense video editing won't be this phone's forte. Lighter tasks like tweeting will, I hope, be handled without trouble.

Software

Having Android 4.4.2 is a huge plus. Most budget phones -- and, annoyingly, quite a few more expensive phones -- tend to come with older versions of Android, with only a vague promise of an upgrade at some point. It's extremely refreshing to see brand-new software on a phone so cheap.

It's a near-stock version of KitKat, with none of the usual manufacturer skins and tweaks you'd find on phones like the Galaxy S5 and HTC One M8. Apart from making it a much less cluttered interface, it has the benefit of being less demanding of the processor as there are fewer background processes being run. On a lightweight, dual-core chip, that's going to be important.

Motorola has left out its "always-listening" touchless control however, explaining that the sensors and software required for this would have made it more expensive. I'll be surprised if anyone really misses these features.

Design, camera, storage and battery

Physically, it's easy to see the family resemblance to the Moto G and much pricier Moto X. Although smaller, the E has the same rounded corners, along with the gently curving back panel. The curves on the Moto G help make it extremely comfortable to hold in one hand, and broadly speaking, the same is true of the Moto E. It feels well constructed, and I didn't notice any unpleasant creaking during my hands-on time, but the E definitely feels bulkier than the Moto G, and a degree less luxurious.

You'll be able to grab different coloured back panels for the phone if you fancy matching it to your outfit, or simply replacing a tired old case with a fresh one.

Around the back is the same 5-megapixel camera from the Moto G. Although it's nowhere near the quality of the Galaxy S5's camera, for example, the Moto G's was adequate for the price. Assuming it maintains the same quality, the Moto E's will almost certainly be among the best cameras available on a phone for less than $150 or £100 unlocked. I'll be putting it through its paces in the full review.

The phone has only 4GB of storage on board, which won't be enough to house your music and videos -- particularly not when you start filling it up with apps. Under the plastic back, however, is a microSD card slot, allowing you to expand the storage to your heart's content.

Finally, Motorola reckons the Moto E has an "all-day battery". That's an attractive claim, as I find with even moderate use most phones need a boost in the afternoon if they're to keep going until I go to bed, but with a low-powered processor the Moto E may have a good shot. As always, battery life will vary wildly depending on how demanding you are of the phone.

Outlook

If you're struggling to decide between the Galaxy S5 and One M8, the Moto E certainly won't be a confusing third option. Instead, it's squarely aimed towards emerging mobile markets where flagship phones are simply too expensive for most people. In the US and UK, the Moto E will likely find a home in the pockets of those who only want social apps such as Twitter and WhatsApp, and simply don't need to spend hundreds on higher-end devices.

It's unquestionably an affordable bit of kit, but you can pick up the higher-spec Moto G for only £119/$179 (or £149/$219 for the 4G version), meaning it's likely still the best deal around. Plus, while the Moto G has the slick design and fetching screen to disguise its budget price, the Moto E does -- unfortunately -- feel a little more basic in these respects. Unless you're desperately trying to save every penny you can, the Moto G will probably be a better long-term bet.