Wireless service provider United States Cellular Corp. USM – a subsidiary of Telephone and Data Systems Inc. TDS – has announced that LG Electronics' latest smartphone, G Flex2, will be available with the carrier effective today.
Notably, G Flex2 is the world's first Snapdragon 810-powered smartphone and LG's second smartphone with a curved, flexible body following the original G Flex. The G Flex2 will be available in platinum silver and will be offered by U.S. Cellular, both online and in stores.
All qualified customers will be able to include it in their Shared Connect plan and obtain it for zero upfront payment using U.S. Cellular's equipment installment option. Under this option, customers will have to pay tax on G Flex2 at the point of sale, and then pay 20 monthly installments of $31.50 each that will be added to their wireless bill each month. The phone will also be available at a price of $149.99 with a two-year contract with the carrier, or for $630 outright. Moreover, customers can upgrade this device in 12 months’ time by trading it in for an updated model, and decide to pay off the entire balance of their device whenever they wish for.
Interestingly, G Flex2 has been the most prominent smartphone at this year's International Consumer Electronics Show. Notably, U.S. Cellular will be the second U.S. carrier to offer the G Flex2 as the device is already available with Sprint Corporation S. However, Sprint has been selling G Flex2 for $199.99 on contract. Meanwhile, AT&T, Inc. T is also planning to launch the same phone in the U.S.
U.S. Cellular is determined to offer the best wireless experience to its customers by providing the latest innovative devices coupled with superior quality network and national coverage. The G Flex2 launch is a step forward in this direction. The company is optimistic about the growing demand for smartphones, which enjoys a significant market penetration, supporting growth in data revenues.
Incidentally, U.S. Cellular reported fourth-quarter 2014 loss per share of 25 cents, significantly narrower than the Zacks Consensus Estimate of a loss of 64 cents. Revenues of $1,008.7 million missed the Zacks Consensus Estimate of $1,020 million. However, the figure improved 12% from $902.7 million reported in the year-ago quarter.
Meanwhile, U.S. Cellular has been divesting some of its non-strategic assets to invest in long-term growth opportunities. The company has also taken a number of strategic actions that will likely accelerate growth in the future thus enhancing its return. The strategies include introduction of a new billing system, continuous rollout of 4G LTE, enhancement of LTE handsets and the completion of various spectrum transactions. The company is also focused on improving cost and profitability by managing data delivery cost and introducing equipment installment plans.
U.S. Cellular currently has a Zacks Rank #2 (Buy).
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