LG’s Shine arrives at AT&T Mobility

AT&T Mobility and LG Electronics Co. Ltd. are betting that American consumers will upgrade their handsets based on a combination of style and features-and are willing to pay the price.
Those are the twin lures of LG’s new Shine handset, which combines a silver, brushed-metal exterior with an array of features that include a 2.2-inch exterior display, a 2-megapixel camera, Bluetooth connectivity and AT&T Mobility’s multimedia offerings. The handset sells for $150 with a two-year contract and $50 mail-in rebate.
The enormous publicity this past year over Apple Inc.’s iPhone-which launched at $500 and $600, before settling down to $400 for the 8 GB model just months after launch-may have had the effect of resetting Americans’ perception of handset value, particularly as they upgrade.
Over the weekend, however, AT&T Mobility cut by half nearly every handset price in its online portfolio, including the Shine, which is temporarily available for $75. Two handsets not slashed in price: the iPhone and Samsung Electronic Co. Ltd.’s BlackJack. Verizon Wireless cut prices on about one-quarter of its portfolio. Sprint Nextel Corp. slashed prices on three music-centric handsets and T-Mobile USA Inc. made no similar moves.
The move may well prove to be a quick, potent lure to bring in new subscribers and retain existing ones for the market leader, which has racked up envious subscriber numbers this year.