AT&T has launched the Atrix, a 4G Android phone from Motorola. The Atrix can dock with a special peripheral that turns it into a laptop computer, though that feature comes at an added price, both for hardware and service. This is the first major Android release coming from AT&T since it lost its U.S. iPhone exclusivity, and it may signal a shift in the carrier's strategy.
Tuesday marks the launch of Motorola's (NYSE: MOT) Atrix Android phone, the first smartphone AT&T (NYSE: T) is calling a "4G" handset. With AT&T pushing a handset that boasts fourth-generation network compatibility, all four major U.S. carriers have officially boarded the 4G bandwagon.
The Motorola Atrix
In addition, it is perhaps one of the most high-profile Android devices to come to the mobile provider. The Apple (Nasdaq: AAPL) iPhone was generally regarded as AT&T flashship device for years, but now that the carrier no longer has U.S. exclusivity on that device, it appears to be taking Android phones more seriously with the launch of the Atrix.
Use It as a Laptop
The Atrix includes a curious feature that allows it to connect to a special laptop dock. The dock is basically a laptop without any innards. There's a screen, a keyboard and touchpad, but nothing powering it -- that is, until an Atrix phone is plugged into it.
At that point, the Atrix goes into a sort of "laptop mode," with a specially designed user interface that is more amenable to full-fledged computer use. It's like having an actual laptop, but everything is powered by the phone.
For years, smartphone companies have been referring to their devices as portable computers, and by now some of them have the capacity to actually be powerful enough. The problem is that the screen and keyboard are so small that it's often difficult to do anything labor-intensive with them.
This innovation is potentially groundbreaking, with an emphasis on the word "potentially," said Debra Gross, a computer science professor at The Ohio State University.
"Computer users all around the country are already using mobile network connections to power their devices, thanks to MiFi peripherals and mobile phone tethering, but actually powering a computer with a smartphone basically acting as the motherboard is something entirely new," Gross told TechNewsWorld. "If it is actually a pleasant experience, it could change the way people think about doing work on the go."
That functionality, however, is not without added costs.
The Atrix itself varies in price, depending on the retailer. Its official contract-subsidized price is US$200 -- competitive with most other top-line smartphones today. That's what you'll pay if you go to an AT&T store; however, Radio Shack is selling it for $150. That price is matched by Amazon (Nasdaq: AMZN). And then there's Walmart, which has set a price at $130.
Whatever one might pay for the phone, that cost shoots up for anyone who wants the laptop dock. AT&T offers the laptop dock separately for another $500; purchased as a bundle, phone and dock can be had for $500 total after a mail-in rebate and service contract. Either way, that price brings the Atrix into roughly the same price range as buying a phone and a low-priced standalone netbook computer. And to even use the laptop dock requires users to sign up for a data tethering plan, tacking on another $20 per month.
AT&T Goes 4G
Another Atrix issue concerns the phone's data network.
While AT&T is working to get a stronger infrastructure in place, it is currently using a standard called "HSPA+." This offers significantly faster download speeds than current 3G networks, but there remains some debate about whether HSPA+ is true 4G.
Another so-called 4G technology is called "LTE," or Long-Term Evolution, and it's a technology both Verizon and AT&T are investing in.
The Beginning of an Android Push
Finally, what about the operating system powering all of this? AT&T has seemed relatively cool toward Android from day one. Of course, since before Android launched, AT&T had been touting its exclusive relationship with the iPhone, and it continued to have strong ties with Blackberry maker Research In Motion (Nasdaq: RIMM). For AT&T, it really didn't need a boost from a newcomer like Android. Now that its iPhone exclusivity is over, perhaps it does.
The Atrix is probably just the beginning of a new AT&T shift, Travis Hodges, a social media specialist and account executive at Drum Marketing, told TechNewsWorld.
"AT&T doesn't want to be a one-trick pony. It has a very strong relationship with Blackberry, has shown great interest in Windows Phone 7, and of course will continue to be partners with Apple," he said. "However, there's only one platform with the biggest momentum right now, and that's Android. If AT&T is smart, which I believe it is, it has no choice but to go with that momentum."
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