CTIA Wireless 2009

AT&T Rolls Out Extensive QWERTY Lineup

| Mar 31, 2009 | Mobile Devices | Show Update

| Analyst: Avi Greengart

Current Perspective: Very Positive Vendor Importance: High Market Impact: Very High

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Event Summary

March 30, 2009 -- Just ahead of CTIA, AT&T announced its Spring lineup of QWERTY phones. In the smartphone category, AT&T debuted the Nokia E71x ($99) and the Samsung Propel Pro ($149, available April 14). Featurephones include the Samsung Impression ($199, available April 7), Samsung Magnet (for “an affordable price”), LG Xenon ($99, April 8), and LG Neon (price not listed). The Nokia e71x, LG Neon and Samsung Magnet will be available in the following weeks.

Analytical Summary

• Current Perspective: Very positive on AT&T’s CTIA QWERTY rollout because the carrier now has the broadest line of messaging phones across multiple price points, in both featurephone and smartphone variants. Consumers have clearly moved beyond 12-button clamshells, and AT&T truly has something for everyone. AT&T’s exclusive on Apple’s iPhone 3G is still a major draw, but the carrier offers the widest variety of smartphone platforms, including a new Symbian phone (Nokia’s incredibly thin E71x, just $99), and a new Windows Mobile option (Samsung’s Propel Pro). AT&T’s QWERTY featurephones span the entire range from entry-level like the LG Neon and Samsung Magnet all the way up to Samsung’s Impression, a premium device with a huge AMOLED screen.

• Vendor Importance: High to AT&T because not every mobile subscriber wants – or can afford – an iPhone and the data plan that comes with it. QWERTY phones tend to increase consumer messaging, so this device portfolio should help AT&T raise ARPU. Samsung and LG were already well represented in AT&T’s lineup, but the E71x is incredibly important for Nokia, as it is the first carrier-subsidized Symbian smartphone in the U.S. that is fully competitive.

• Market Impact: Very high on Consumer Handsets as the broad range of QWERTY devices provides new options for price sensitive buyers and those on family plans (either the kids or, increasingly, the parents who need to communicate with them). The impact of this announcement on smartphones is less pronounced, as all carriers offer a variety of QWERTY options. Nokia’s E71x is a terrific value, but it cannot reverse Nokia’s problems in the U.S. by itself.

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Current Perspective

Competitive Positives and Concerns

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