AT&T (NYSE:T) is getting ready for the holiday season by introducing new devices almost on a daily basis in a bid to gain more subscribers. This past week, the company offered an attractive deal to customers by offering a two-for-one deal. The deal is if a customer buys a Samsung GalaxyTab 8.9 with LTE between November 20th and January 7th, 2012, AT&T will throw in a free LTE-capable Samsung Galaxy S II Skyrocket or HSPA+ capable Samsung Galaxy S II smartphone. [1]
See our complete analysis for AT&T stock here
New devices aimed at gaining subscribers
In another offer, AT&T said that it will sell the 3G version of the Amazon (NASDAQ:AMZN) Kindle Touch e-reader, one of three new e-readers recently announced by Amazon, for $149. This is the first time AT&T will be selling the Kindle e-reader in its retail stores, which will give people an opportunity to play around with the device before they buy it. [2]
Last week, AT&T launched new Microsoft’s (NASDAQ:MSFT) Windows based smartphones. [3] All these launches indicate that AT&T is banking heavily on new devices to compete with Verizon (NYSE:VZ) and Sprint (NYSE:S) in the telecom market. Marketing new devices have become important for AT&T especially after the company has lost the exclusivity to sell Apple‘s (NASDAQ:AAPL) iPhone. The recently released iPhone 4S is available on all three major U.S. telecom providers – AT&T, Verizon and Sprint. Our $38 price estimate for AT&T stock is about 30% above market price.
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Notes:- New 4G LTE Tablet Available for AT&T Customers, Press release, November 14th, 2011 [↩]
- Lighten Santa’s Load this Holiday Season with the Compact Kindle Touch 3G, Press release, November 15th, 2011 [↩]
- New Windows phones, AT&T website [↩]
