Leading telecom carrier, AT&T Inc. (T - Analyst Report) announced that the company will be one of the leading U.S. operators to launch the Samsung Galaxy Tab S, complete with access to 4G LTE, as part of its portfolio of Samsung devices.
The new tablet, which measures 6.6 mm, runs on Google Inc.’s (GOOG) Android 4.4 KitKat and features a Super AMOLED display and a sleek look. We believe this latest addition to its already existing pool of devices will pep up AT&T’s popularity and bring additional customers under its wings.
Reportedly, apart from AT&T, other carriers planning to launch the Galaxy Tab S include Sprint Corporation (S - Analyst Report) and Verizon Wireless of Verizon Communications Inc. (VZ - Analyst Report).
To make the brand new tablet even more attractive, Samsung has tied up with content providers such as Netflix, Inc. (NFLX - Analyst Report) and Marvel, so as to add special content-based features to the Tab. While Netflix intends to offer Full HD titles for streaming, Marvel will add a new application that will facilitate reading of high-resolution digital comics. Such new and exciting features promise to add up to the USP of the new tablet, giving it an edge over other comparable devices currently available. These inclusions will, in turn, translate into high returns for AT&T.
Apart from selling an array of high-end devices, AT&T is banking on other opportunities to improve its growth profile 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 paying any down payment, activation charge, upgrade cost or financing fee. The company’s Mobile Share plan is also gaining popularity with over 21 million post-paid subscribers.
The company has introduced new mobile Share Value plans to ramp up sales and provide value to customers through greater savings with no annual service contract options. In Jan 2014, AT&T initiated 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. Further, in Feb 2014, the company also slashed prices on its family plans bringing the cost for customers down to $160 per month for unlimited talk time and text and 10 GB data for a family of four.
AT&T currently has a Zacks Rank #3 (Hold).