Cheaper smartphones are required to boost the ailing prepay market, the CEO of Carphone Warehouse has said, as he revealed the business was looking to expand beyond its core British and French markets.
Roger Taylor was speaking to analysts after the retailer revealed its latest results. While it said it was on course to hit profit targets for the year, like-for-like sales declined 5.5% and total connections were down 19%.
Taylor said cheaper smartphones were needed to halt the decline in prepay sales. The retailer's prepay sales were down between 30% and 40% year on year. He said: 'What we need is a catalyst to get the prepay market going again and I think the only (way) that's going to happen is when there are smartphones available at that pricing point. Generally that's below £100.'
Taylor revealed the business was looking to expand into markets like China, Latin America and Eastern Europe. He added: 'We are exploring similar what I call 'store within a store' opportunities with business partners around the world.
'I'm travelling a lot around the world trying to explore who are the best partners and the best markets. It's something which we are very keen to do...We have to have characteristics that suit our business: we want high ARPUs (average revenue per unit), large population, competitive environment between networks. They are all important dynamics.'
Editor: Graeme Neill