CPW Europe looks to cheaper smartphones to drive prepay turnaround

CPW Europe looks to cheaper smartphones to drive prepay turnaround

Carphone Warehouse Europe is looking to lower priced smartphones to reinvigorate the prepay market in the second half of this year.

The retailer issued its interim management statement for the quarter ended 30 June 2012 this morning (27 July). As forecast, like-for-like sales were down 2% and total connections fell 17.8%, which the retailer said was driven by the weak prepay market. CPW Europe claimed there is a lack of attractively priced smartphones to drive prepay sales.

However, the retailer had more success in the contract market, although it refused to reveal figures. It said UK contract sales had been driven by its weekly 'Smart Deals' offer. The statement said: 'Although the prepay market remains weak, we have reason to be more optimistic about the increasing availability of lower-priced prepay smartphones as the year progresses.'

The retailer predicted that the European retail market will remain challenging and it will continue to suffer the effects of regulation and competition. However, it said it was confident about the months ahead due to 'strategic positioning and operational execution'.

Carphone Warehouse CEO Roger Taylor said: '[In June] we said that CPW Europe was ideally placed to service the complex postpay market, and this remains the case. Our recent offers and new initiatives have already seen positive results across the business, and we are maintaining excellent customer service scores. As anticipated, the prepay market continues to be weak, but we remain confident in our opportunity to reinvigorate this market by driving smartphone penetration into this segment, particularly in the second half.'

Editor: Graeme Neill

Written by Mobile Today
Mobile Today


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