Back to top

Analyst Blog

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).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
FELCOR LODG… FCH 10.47 +3.46%
OLD DOMINIO… ODFL 63.48 +1.18%
VASCO DATA… VDSI 13.57 +0.67%
AMEDISYS IN… AMED 20.18 +0.10%
LENOVO GROU… LNVGY 27.07 +0.04%