7/31/2009 9:25:00 AM
Two year contracts account for almost 60% of all deals sold
Two year handset deals now account for nearly 60% of all contracts being sold, according to the latest industry statistics.
Two year contracts have been fuelled by operators trying to entice customers into longer tie-in periods with heavier discounts on handsets or cheaper tariff deals.
It puts pressure on handsets to perform well and remain robust over two years.
Retail staff said most handsets don’t survive two years, leaving consumers with dated or malfunctioning devices. They pointed to handsets being sold on contracts two years ago such as the Nokia N73, Samsung U600, LG Prada and Sony Ericsson K810.
One store manager said: ‘Those handsets will look awful and probably won’t work now. The problem is, the market is moving so fast. Smartphones that we’re currently selling are much more complicated, and probably even more likely to suffer faults and knocks.’
O2 has led the charge for two year contract terms with the iPhone, and Vodafone has followed the trend.