Company also announces 4G version of Moto G.
Motorola signalled its intent to dominate the budget smartphone market with the launch of a low-cost the Moto E, which will be available for around £79.
A UK release date for the device is still to be confirmed, with the company saying it should be within 'the next few weeks', but the Moto E will go on sale from Motorola's US site for $129 contract-free from today.
The phone has a 4.3" hi-resolution 256ppi screen and will run the latest version of Android KitKat 4.4.2.
It will be powered by a 1.2GHz dual-core Qualcomm Snapdragon 200 processor and 1GB of RAM, with Motorola also promising "all-day battery life" for the Moto E thanks to the device's 1980 MaH battery.
The device will come with 4GB of internal storage, but this can be upgraded thanks to a microSD slot which will allow for up to 32GB of additional expandable memory. The device will also come with a 5MP rear camera to help fill all that memory. Personalisation comes with 20 interchangeable backs called Motorola Shells, allowing customisation in colour and design.
The firm also announced an upgraded version of the company's well-received Moto G smartphone, which will now include support for 4G LTE networks. First launched in November 2013, the latest edition costs $219.
The devices are the first releases from Motorola since it was sold by Google to Lenovo for $2.91bn in January, as the Chinese company looked for an established entry into the booming smartphone market.
Source: Company Press Release