The Seattle-based retailer slashed 50 percent off the Atrix's already-affordable $100 price tag, highlighting its aggressive push to become a force in mobile products.
The move comes as Amazon launched its app store earlier last month.
In fact, Amazon isn't content with selling products online. In March, it announced a "Cloud Drive" music service, which allows music listeners to access their songs from any Android smartphone or PC.
A week later, people familiar with the matter said the company is mulling plans to offer a mobile payment system for smartphones, entering the race with Google and Apple for a piece of a $1.13 trillion industry.
The Atrix is one of AT&T's first 4G phones, offering a speedy 1-gigahertz dual-core chip, 1-gigabyte of RAM and Android 2.2 software. A special laptop dock -- sold separately for $500 -- can turn the smartphone into a computer.
AT&T, meanwhile, has been cozying up to Android after it lost exclusive rights to the iPhone. Ironically, in past years, Verizon teamed up with Android to produce a string of successful "Droid" phones to match AT&T's iPhone.
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