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AT&T Offers Lumia 920 for Free

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AT&T Inc. (T) – the second-largest telecom operator in the U.S. after Verizon Communication Inc. (VZ) – recently announced its plan to offer Nokia Corporation’s (NOK) latest Lumia 920 Windows 8 handset free of cost to subscribers.

The new Windows 8-based smartphones will be free for customers who are willing to subscribe for a two-year plan costing only $99.99 per month. However, the cost increases to $349 for a one-year deal and $449.99 for a month-to-month agreement.

Such a move initiated by AT&T on the back of Amazon.com Inc.'s (AMZN) latest plan to sell Lumia 920 for $39.99, which comprised a huge discount of $30. Moreover, Amazon is selling the new Lumia 920 for $19.99 (inclusive of a two-year contract) to both individual and family members.

A few days back, AT&T reported its first-quarter 2013 results, where its bottom line met the Zacks Consensus Estimate but the bottom line missed the same. AT&T added 291,000 wireless customers in the reported quarter and sold 6.0 million smartphones, which is 4.2 million less than its previous quarter.

Therefore, in order to boost its smartphone sales as well as to drive its post-paid customers, AT&T is continuously launching such innovative plans. The company is offering popular phones like HTC First, BlackBerry Torch and Apple Inc.'s iPhone for only 99 cents. Moreover, to target the low-end market, the company is also offering refurbished handsets at a discounted rate.

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

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