AT&T Inc. (T) recently announced its plans to launch Samsung Gear S at its stores in the fall of 2014. Customers can buy this new phone beginning Sep 26.
The latest product launch comes close on the heels of the carrier’s last week announcements of the upcoming launches of LG G3 Vigor and Samsung Galaxy Alpha. We believe the new product rollouts will enable the company to keep up with the mad rush characteristic to the present-age smartphone market. Moreover, in the face of iPhone6 creating a wave in the said market, the new offerings will also ensure better value for Android loyalists.
Apart from selling smartphones, AT&T is also looking at opportunities to improve its growth profile and remain competitive against rivals like Verizon (VZ) and Sprint Corporation (S) on the back of a number of strategic initiatives. Last year, the company began selling AT&T Next, that offers customers with early upgrades to smartphones and tablets every 12 or 18 months without having to pay any down payment, activation charge, upgrade cost or financing fee. The company’s Mobile Share plan is also gaining popularity with already 21 million post-paid subscribers under its wings.
AT&T has also introduced new mobile share value plans to generate higher sales as well as deliver greater value to customers through better savings with no annual service contract options. Further, in Jan 2014, AT&T had come up with a promotional offer of $100 credit for new and existing customers who add an additional smartphone, tablet, feature phone, mobile hotspot or Wireless Home Phone line. In Feb 2014, the company also slashed process fee on its family plans bringing cost down to $160 per month for unlimited talk and text and 10 GB data for a family of four.
AT&T currently has a Zacks Rank #3 (Hold).
A Stock to Consider
A better-ranked stock worth considering in this sector is Telefonica S.A. (TEF) with a Zacks Rank #1 (Strong Buy).
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