People with knowledge of the matter reported that AT&T Inc. is to become the exclusive carrier of the new smartphone of Amazon.com Inc. The people familiar with the process also said that the new smartphone model is to be officially revealed this Wednesday. The deal is considered beneficial for AT&T because it is able to help it attract new users at a time when the rivalry between the wireless carriers has become fiercer than ever.
The agreement between the two companies makes the relationship between AT&T Inc. and Amazon.com Inc. even stronger than it was until now. AT&T Inc. also provides Kindle tablets and e-readers with wireless services. This will not be the first time when AT&T Inc. is to be an exclusive partner of another company, considering the fact that it once played the role of such ally to Apple Inc. when the latter released its flagship iPhone in 2007.
Earlier this month, Amazon.com hinted that it is planning a new core product that is to be unveiled soon, launching a mysterious YouTube video and publishing a post on its website to mark June 18th as a special “launch event” with the companys CEO Mr. Jeff Bezos being a host. Many analysts and experts believe that the event will be devoted to launching Amazons first smartphone, which may eventually feature a 3D display.
Unveiling a smartphone looks like a logical move of Amazon.com Inc., which has been focused on consolidating its positions on the highly-competitive market. A mobile phone featuring a 3D display that doesnt require special glasses, may provide the company with a headstart in comparison to other companies that are working on similar products.
AT&T Inc. was 0.29% up to trade at 35.08 dollars per share in New York, marking a one-year change of -1.9%. According to the information published on CNN Money, the 24 analysts offering 12-month price forecasts for AT&T Inc. have a median target of 35.50, with a high estimate of 42.00 and a low estimate of 25.00. The median estimate represents a +1.49% increase from the last price of 34.98.