Carphone Warehouse CEO Andrew Harrison hailed the merger deal as a great opportunity for Carphone’s suppliers and employees.
‘I think this is a really good development for all of our partners because we will be giving them new value tools to create growth in areas they are all keen to see.
‘If you look at the US carriers, they have invested all their money in trying to ? nd new revenue streams in the home. That is where we will be strong. The hidden gem in this deal is the value tools that we will be able to give to our partners.’
Dixons is the market leader in tablets and laptops, which will outstrip smartphones as the main consumers of data usage as video streaming and on demand TV grow in popularity.
Harrison said the merger would be good for Carphone employees in the long term. ‘This is a huge opportunity to work for a company that will have a much larger scope in that connected world. I am hoping that there will be a good cross pollination in the business.
Industry sources agree that the deal has strengthened Carphone’s hand. ‘It puts them in a better position with operators,’ said one industry exec. David Alexander, of retail consultant Conlumino, added, ‘the fact they will be so huge means they will have a greater negotiation power with the likes of Samsung, Apple and the mobile networks.’
‘What is interesting is what Phones 4u will do. Do they want compensation? Are they talking up the value of the business to them so that they can get compensation? Or will they walk away quickly?‘ asked one manufacturing source.