Is AT&T Facing Pressure?

A big focus of the AT&T discounts is special deals on Samsung’s Galaxy smartphones and Gear S2 smartwatches. Analysts interpreted that focus on Samsung devices as a way to clear out inventory prior to expected upgrade announcements coming in late February at Mobile World Congress in Barcelona.

AT&T is also facing pressure to add more subscribers, as analysts — including Evercore ISI this week– have predicted AT&T’s fourth-quarter postpaid subscriber loss will be more than 300,000. That comes amid reports that T-Mobile added 4.5 million net subscribers for the fourth quarter and Verizon Wireless added 525,000.

All the major carriers, including AT&T, hit the December holidays with special device deals, but AT&T apparently didn’t feel enough impact on its inventory from those offers, analysts said.

AT&T and Samsung are motivated to get rid of all the old inventory before new models arrive, said Patrick Moorhead, an analyst at Moor Insights & Strategy. “Retailers won’t run such an aggressive promotion unless they have a lot of stock.”

An AT&T spokeswoman provided a different explanation: “Due to popular demand, AT&T is bringing back some of its holiday promos.”

Those promos — available to both consumers and business customers at AT&T retail stores — include a free Samsung Gear S2 smartwatch for a limited time to any customer buying a Samsung Galaxy smartphone, or a free Samsung Galaxy Tab 4 for buying a Galaxy smartphone on an AT&T Next wireless plan. AT&T is also offering an iPad mini 2 for $99 when a customer buys a new iPhone on the Next plan.

For business customers, the 2-for-1 smartphone deal is new. It allows business customers to buy a new smartphone and then get another smartphone, valued at up to $650, for free.

Source-http://www.thegurureview.net/mobile-category/att-facing-pressure-offers-aggressive-smartphone-discounts.html