Making attractive products that people want to buy with next to no or zero profit is easy; you just shove all the best hardware into a device and sell it for the cost of the parts. However, that does not make you a successful company; in fact, I'd argue that makes you a very unsuccessful company as you are failing in your primary objective; to make as much profit as possible.
I'm not sure if what Motorola is doing will actually secure their future in the long term. All that's happening is that they're cheapening their brand; people will come to expect Motorola phones to cost around £100/whatever, and won't be prepared to spring for the more expensive devices that actually make them a healthly profit. Sadly, it's probably too late for Motorola as Apple have long since secured their position as the de-facto gold standard in smartphones (why spend £500 on a Motorola when you can get an iPhone type mentality etc).
