Price delta narrows

Price delta narrows

Senior figures of multiple retail chains are complaining that prices of new handsets are too high when they arrive on the market.

Retailers said that new prepay handsets are not making enough impact because customers compare them to much better specced end-of-life handsets, which have been heavily discounted.

One senior figure pointed to the simple Samsung J700, which has recently launched and is priced at £70. It is the same price as the Samsung D900, which is approaching the end of its shelf life, and has been heavily discounted but is much more capable.

A senior retail source said: ‘Consumers don’t always know how long a phone has been on the market. So it’s a bit difficult to give a product that bang at launch. The pricing is way too high for new phones, and I can’t believe I’m saying this, but way too low for older products.’

Other examples are the low-specced Sony Ericsson W350i and W380i, both priced at £80 Ð the same as a higher-specced Sony Ericsson K800i.

Written by Mobile Today
Mobile Today

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