Motorola Ciena (Citrus) breaks Android price barriers
The Ciena will feature a 3.0 inch QVGA display (120 dpi), a 528 MHz Qualcomm CPU, 512 MB of ROM, 256 MB of RAM, a 3 megapixel camera with no flash and a fixed focal length, and the BackTrack trackpad featured on the Motorola Charm.
While budget-conscious consumers might be excited, Google could complain that the device doesn't meet its minimum requirements for an Android 2.1 device. The device fails standards in the following ways: it lacks vibration notification, and it has only 100 MB of user storage (150 MB are required).
The Ciena's failure of the Android 2.1 CDD (Compatibility Definition Document) could mean the device will lack Google services like Gmail and the Android Market. This seems doubtful, as they might be more likely to kill the project than release it without app support.
Even though there might be a niche for such a device, it could hurt the image of Android overall. Then again, maybe Verizon's Android line needs an entry-level device like RIM's BlackBerry Curve. We don't have pricing information yet, but expect it to be less than $200 with 2-year contract.
source: Android and Me