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Double Delight for AT&T Customers

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Leading U.S. Communication firm, AT&T Inc. (T - Free Report) has announced the launch of two new smartphones, which will run on Google Inc.’s Android operating system (OS). AT&T will launch Moto X and HTC One mini on Aug 23, 2013, diversifying its smartphone portfolio.

Moto X is the latest phone from Motorola Mobility, which houses a 4.7 inch HD display, a 10 mega-pixel camera with LED flash coupled with innovative features like touchless control. Touchless control works by recognising the user’s voice.

Moto X will be first phone from AT&T, which will allow customers to customise their own version through AT&T stores or through its website. Among others, Moto X subscribers can choose the front and rear color of their Moto X version and can add their names on the back of the phone. The customised version will be shipped within four days from the placement of the order.    

Customers can choose from a 16GB or a 32GB version of Moto X, which is priced at $199.99 and $249.99, respectively. The devices come with a two-year contract. Additionally, customers can avail the 16GB and 32GB option for a monthly instalment of $27 and $35, respectively, through AT&T’s ‘Next’ monthly plan.

Meanwhile, HTC One mini will be priced at $99.99 with a two-year contract and shares the same iconic designs and popular features of its bigger counterpart. The slimmer and lighter body of the mini features a 4.3 inch 7209 HD display, 1.4GHz dual-core processor and HTC’s UltraPixel camera with illuminated sensor at the back allowing bright pictures in low light.

AT&T has already launched the bigger version of HTC One five months back and rival Verizon Communications Inc. (VZ - Free Report) is expected to launch the same on Aug 22, 2013 and will be available at $199.99 with a two-year contract.

AT&T registered 1.2 million post-paid customers in its second quarter, mainly attributable to Apple Inc.’s (AAPL - Free Report) iPhones and Google’s Android-based phones. However, the total churn was 1.36% compared with 1.18% in the prior-year quarter.

We believe that the impressive features of both the phones along with the fastest LTE network in the U.S. will provide a rich experience for AT&T customers. Nevertheless, several launches from rival carriers along with the much anticipated launch of Apple’s latest iPhone could negatively impact the sales of the smartphone.  

AT&T currently carries a Zacks Rank #3 (Hold).

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