2/26/2009 11:37:00 AM
Carphone CEO: 'mobile customers expect price cuts'
Carphone Warehouse's UK chief, Andrew Harrison, warned that the mobile industry must get leaner and fitter to make price cuts and maintain consumer demand.
He was speaking after Carphone announced a raft of job cuts in its UK business.
‘If prices of cars and houses have come down by 30%, people are naturally going to expect the same of mobile phones – at a time when the world is experiencing rising component prices.
He added: ‘You have got to tailor your economics to the new world. Everybody [now] needs to work out how they do it. Manufacturers’ need to work out how they cut their offer and reduce their pricing against rising costs from component suppliers. That is what everyone is trying to do.’
Harrison was speaking as Carphone announced that it was cutting up to 450 jobs in the UK from its head office and administration functions. He said the steps were needed to make Carphone more efficient and better able to cut costs, and provide attractive deals to consumers.
The cuts will be made after a detailed review of operations. Retail jobs will not be affected, he said.