In its latest bid to grab an extra slice of market share, Motorola has announced that it has lowered the price of its flagship smartphone, the Moto X, to $399.

The Moto X, which was first released in August last year for $550, comes with 16 GB of memory, a 720p 4.7-inch display and a dual core main processor. While other flagship devices have quad core chipsets, Motorola decided on a different route for the Moto X. Aside from the main CPU, the Moto X also has two secondary CPUs. While the Moto X was given price cuts for special sales a few times last month, the company said the current price drop is permanent and not simply part of a promotional event. 

While the new $399 price tag is for an off-contract unit, people looking to purchase the phone with a contract can expect a price tag of $99 with a two-year lock-in period. The Moto X can be acquired along with a contract at most wireless carriers such as T-Mobile, Sprint, AT&T and Verizon. For people who need an unlocked phone to use with different carriers however, an off-contract phone would be more advisable. 

With the new price tag, the Moto X has become a more desirable unit than ever, making it more affordable compared to similar flagship devices from Samsung and Apple. However, Google's Nexus 5 is still $50 cheaper compared to the Moto X. 

"Today several wireless carriers offer good month-to-month or prepaid service plans that cost much less than the contract plans that come with subsidized devices," says Rick Osterloh, the current senior Vice President for Product Management in Motorola. "Combine one of those plans with our new $399 everyday pricing and you could save hundreds of dollars over two years while keeping the freedom to change service providers when you feel like it."

The Moto X started out slow with a reported Q3 sales report of 500,000 units. However, the recent price cut may help boost sales and help Motorola catch up with its competition.