AT&T Inc. (T) introduced five new smartphones based on Google Inc.’s (GOOG) Android operating system.
The second-largest U.S. mobile service provider unveiled Motorola Mobility Holdings Inc.’s (MMI) ATRIX 2, which is on the top list of its portfolio. The device will hit stores on October 16 with a $99.99 price tag and a two-year contract.
The other smartphones introduced were Samsung Captivate Glide, Samsung DoubleTime, Pantech Pocket and AT&T Avail. Notably, AT&T Avail is the second Android phone offering prepaid services. The pricing and availability of these handsets were not disclosed.
The new additions bring the total number of smartphones to 19 for 2011, up from the targeted 12.
We believe strong smartphones sales coupled with growth in tablets and connected devices are accelerating subscriber gains while reducing churn. AT&T added 1.1 million wireless customers in the second quarter.
Despite the loss of the exclusive hold on iPhone to its largest rival Verizon Communications (VZ), AT&T activated 3.6 million iPhones in the second quarter compared with 3.2 million in the year-ago quarter. The strength comes from the rapid adoption of smartphones that increased 43% year over year.
AT&T is pursuing a number of strategies to tap opportunities in the wireless data market and currently operates the nation’s fastest mobile broadband network. The company has a large collection of smartphones, tablets, modems and mobile hotspots.
Moreover, the company debuted it long-awaited 4G Long-Term Evolution wireless networks in the U.S. last month. The company has initially launched its services in five cities namely Atlanta, Chicago, Dallas, Houston and San Antonio and looks to cover approximately 15 markets and 70 million Americans by the end of the year. AT&T also seeks to enter into the hotel WiFi (wireless broadband) business.
We are maintaining our long-term Neutral recommendation on the stock with the Zacks #3 Rank (Hold).
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