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AT&T to Boost Smartphone Line-Up

Zacks Equity Research

AT&T Inc. (T), the second largest telecom operator in the U.S. after Verizon Communication Inc. (VZ), plans to bring the new 4GLTE-based HTC One handset for its subscribers.

The new smartphone based on Google Inc.’s (GOOG) widely used Android platform is available with 32 GB and 64 GB memory space costing $200 and $400, respectively. The handset is expected to hit the AT&T store along with Sprint Nextel Corp. (S) – the third-largest wireless carrier in the country on Apr 19. However, customers can order online from Apr 4.

The new HTC One features a 1.7 GHZ quad-core processor and a 4.7-inch full HD screen. It also features HTC BlinkFeed (providing continuous video updates), HTC Zoe (helps to capture special moments), HTC UltraPixel Camera (strong camera sensor) and HTC BoomSound (offering sound clarity). Another exciting feature of the new phone is AT&T DriveMode application, which allows users to auto send message while driving at a speed of 25 mph.

AT&T continues to support its 4GLTE deployment plan with the expansion of 4GLTE handsets. Pre-orders of the much hyped Galaxy S4 smartphone, costing $250 will also start from Apr 16.

Hence, we believe that the availability of such strong 4GLTE-based smartphones will continue to benefit the company to register huge subscriber base, moving ahead. Moreover, such a high-end smartphone line-up with a two-year service contract will further accelerate service revenue, going forward.

Currently, AT&T Inc. has a Zacks Rank #3 (Hold).

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