As if the the Motorola Moto G isn't cheap enough, Motorola has just announced the Moto E. It's a $129 smartphone, unlocked.
It has a 4.3 inch display with a resolution of 540 x 960 (PPI of 256), protected by Corning Glass 3, a 5 mega-pixel rear camera, Qualcomm® Snapdragon™ 200 with 1.2GHz dual-core A7 CPU and an Adreno 302 400MHz single-core GPU. One gigabyte of RAM, and 4 gigs of internal storage. 4 gigabytes isn't much, but this phone has expandable storage up to 32 gigabytes. It does not have a front facing camera.
The Moto E is running Android 4.4.2 with guaranteed updates.
It also will have swappable backs that will come in different colors, like the Moto G.
http://www.motorola.com/us/consumers/shop-all-other/Moto-E/moto-e.html