8/29/2014 12:12:34 PM
Handset sales decline, SIM Free the only area of growth, says GfK
GfK has found that the mobile handset market continued to decline in July, the sector has been decreasing for a number of months now, driven by both prepay and contract. The singular growth area for the industry came in the SIM Free segment which GfK said was emerging as a sustainable alternative to the traditional markets.
The market research firm followed up its monthly report on the telecommunications sector by giving Mobile exclusive insight into the mobile market’s performance in July. It also found that new acquisitions had seen large declines, with the upgrade market seeing a flat year on year performance. GfK explained that this was because consumers who remained in the contract market were remaining more loyal to their networks.
The company said that they believed that a change would occur once 4G became more readily available to the lower end of the market, as this is when price competition and the MVNOs become more prominent.
The increase of market value in the mobile enhancements category had come through the charger market rather than the ‘protection’ category. Cases have seen large declines which GfK said correlated with the fall in Smartphones sales against last year. The firm said that this fitted with the theory that consumers are holding on to their handsets for longer, needing to replace the original charger from purchase.