AT&T Says ‘Apps To All’, Seeks To Extend Smartphone Dominance (T, AAPL, GOOG, MOT, QCOM, NOK)

Analysts at Jeffries, in a recent report, had maintained AT&T (NYSE: T) at Hold rating with a price target of $30.00. The analysts, while initiating coverage, had cited concerns that AT&T is too levered to Apple’s (NASDAQ: AAPL) iPhone smart-phone offering. The exclusive arrangement between Apple and AT&T is likely to end this year, an event that is expected to hurt AT&T’s prospects.

AT&T however seems to have taken heed to these portent signs and has initiated steps to defend and extend its dominance in the smart-phones segment. On 6th January 2010, AT&T announced plans to launch five new devices based on Google’s (NASDAQ: GOOG) Android platform. The company has tied up with an impressive list of vendors namely Dell (NASDAQ: DELL), HTC and Motorola (NYSE: MOT). All three vendors will be launching exclusive smart-phones with AT&T. This move is a part of AT&T’s latest initiative ‘Apps To All’.

Company executives, speaking at the 4th Annual AT&T Developer Summit in Las Vegas, announced an agreement with Qualcomm (NASDAQ: QCOM) to standardize apps development for mid-range Quick Messaging Devices using the BREW Mobile Platform. AT&T will also be setting up a Virtual Innovation Lab and two new Innovation Centers.

AT&T, which has existing agreement with Nokia (NYSE: NOK)for Ovi Store and Microsoft (NASDAQ: MSFT) for Windows Marketplace, also announced an agreement for Android Market. The company has indicated that it will announce more app store agreements. This slew of announcements promises to shake up the telecom market space which is witnessing heightened activity in the smart-phone segment.