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 6.5% over the five years through 2014-15 thanks to mounting competition between operators leading to shrinking profit margins and declines in the average price of phones. In 2014-15 industry revenue was struck by the collapse of Phones 4U in September 2014, meaning industry revenue is forecast to decline by 18.8% to reach £2.46 billion in the current year... purchase to read more
Industry Report - Industry Analysis Chapter
Competition and subdued economic conditions have negatively affected the trading landscape for mobile telephone retailers over the five years through 2014-15. Industry revenue is estimated to decline at a compound annual rate of 6.5% over the five-year period. This is largely the result of the industry's second-largest company, Phones 4U, entering administration in September 2014. As a result, industry revenue is estimated to decline by 18.8% in 2014-15. Subdued economic conditions that resulted in disposable income and consumer confidence falling at the start of the period further compounded the industry's woes.
Performance has been supported by a trend in consumer preferences towards higher value items and the roll-out of new technology such as 4G sparking consumer interest... purchase to read more