Industry Analysis & Industry Trends
Although consumer demand has been fuelled by solid growth in the number of mobile connections and continuing advances in product design and technology, these changes have not translated well into the retail market. Instead of record sales, industry operators have faced a difficult trading environment. Revenue is expected to decline at a compound annual rate of 0.7% over the five years through 2014-15, due to mounting competition between operators leading to shrinking profit margins and declines in the average price of phones. Trends in real personal disposable income and consumer sentiment have also played their part in limiting revenue. In 2014-15 revenue is forecast to increase by 1.5% as economic conditions ease... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is estimated to be in the mature stage of its life cycle. Over the 10 years through 2019-20, industry value added (IVA) is expected to contract at a compound annual rate of 1.3%, compared with an expected expansion in UK GDP of 2.1% over the same period. Although this is a characteristic of a declining industry, the majority of the decline in IVA is expected to stem from falling profitability of small retailers in the industry. Larger companies such as Carphone Warehouse are expected to be better positioned to maintain profitability.
As the market approaches saturation small independent stores are expected to slash prices to compete with larger companies. As a result profitability for these operators is expected to fall... purchase to read more