Is This Device More Important Than the iPhone?

We already knew that AT&T (NYSE: T  ) was going big with the new Nokia (NYSE: NOK  ) Lumia 900 -- bigger than even with Apple's (Nasdaq: AAPL  ) iPhone.

Ma Bell's device chief, Jeff Bradley, recently told CNET that the device's launch would be "a notch above anything we've ever done," iPhone included. Thanks to a recent report from Ad Age, we have an idea on how many marketing dollars qualifies as the biggest launch ever -- $150 million. That amount is more marketing muster than AT&T threw behind the iPhone when it enjoyed nearly four years of exclusivity.

Source: Nokia.com. Lumia 900.

Source: Nokia.com. Lumia 900.

Why does AT&T want to help Microsoft (Nasdaq: MSFT  ) and Nokia regain mobile relevance so badly? As ironic as it sounds, it's the iPhone's fault. Ever since Verizon (NYSE: VZ  ) got its red hands on the iPhone early last year and Sprint Nextel RSVPed to the iPhone party just a few months ago, AT&T doesn't feel so iSpecial anymore.

Verizon has been adding smartphone subscribers faster than AT&T over the past year. comScore estimates that in January 2011, AT&T had about 24.7 million smartphone users, topping Verizon's 17.8 million, thanks to the iPhone advantage it had.

Fast-forward 13 months to a time when the top three carriers all offer Apple's device and Big Red is quickly closing the gap, with 32.2 million smartphone subscribers compared with Ma Bell's 33.8 million. That means Verizon's smartphone subscriber base jumped 81% while AT&T's grew by just 37% over the same time.

AT&T now has another exclusivity card in the Lumia 900, and it wants to play its hand strong. Verizon has already made big bets with Google Android, so AT&T is siding with Windows Phone and the Lumia 900 will be Ma Bell's new flagship phone that it'll be touting front and center.

It'll be an uphill battle, considering Windows Phone's dismal market share, but if this bold marketing move works, it might pay off in spades. Too bad launching a device during the holiday weekend that included Easter Sunday, when many retail locations were closed, was a bit of a misstep.

If you want to play the mobile revolution without picking sides, start from the inside with component suppliers. If you want to learn about three picks to bank on, access the Fool's research report detailing "3 Hidden Winners of the iPhone, iPad, and Android Revolution."

Fool contributor Evan Niu owns shares of AT&T, Verizon Communications, and Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Apple, Microsoft, and Google. Motley Fool newsletter services have recommended buying shares of Apple, Nokia, Microsoft, and Google and creating bull call spread positions in Microsoft and Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (6) | Recommend This Article (7)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 10, 2012, at 10:12 PM, pbearl300 wrote:

    Don't care. Finally weaned of all things Microsoft, I will NEVER buy another MS product. And NEVER, is a long time.

  • Report this Comment On April 11, 2012, at 2:46 AM, Fruitfan wrote:

    Pbear I could not agree more.. Even the people still using MS junk do nothing but complain about their products. I'll be shocked if they take market share from Apple. They will likely pick up scraps from what's left of RIMM and maybe the lower end Droid user

  • Report this Comment On April 11, 2012, at 4:03 AM, jyothishn wrote:

    I wouldn't be surprised to see 100 more comments agreeing with those 2 comments above.

    Why dont people talk about the phone or OS? Just a blanket statement that anything coming from Microsoft must be bad is so lame. Use facts. Try to use the product before you say bad (or good) things about something.

    Here is the list of best sellers on Amazon for you: http://www.amazon.com/Best-Sellers-Cell-Phones-Accessories-S...

    The 2 Lumia models with 5 star rating with 135 ratings are both windows phones if you care to look.

  • Report this Comment On April 11, 2012, at 4:49 AM, pbearl300 wrote:

    jyothishn : What I posted IS a fact. It doesn't matter to many of us anymore what the press is on an MS product. Good bad or ugly, the we've been burned by them.

    BTW: Amazon counts a search as a 'buy' on their rankings..... Who the heck buys a phone with a service plan from a book store?

  • Report this Comment On April 11, 2012, at 8:10 AM, GordonsGecko wrote:

    They sure do know how to make one hell of an ugly phone!

  • Report this Comment On April 11, 2012, at 9:19 PM, Fruitfan wrote:

    Again I have to agree with pbear. After years of having issue after issue with Mr. Softy's products why would I even look at their phone? How many times would you go back to a restaurant that continued to give you bad service and cold food? I will never give MS another look

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