Handset market records three months’ consecutive growth

Handset market records three months’ consecutive growth
The UK mobile handset industry has recorded three months of consecutive growth for the first time in two years, figures from GfK reveal.

The market grew by 6.8% in June this year, while in May it grew by 6.5% and in April by 1.9%

The growth was fuelled by a boom in prepay sales which grew for the first time since March this year. Before March 2010, prepay sales had declined for four consecutive months, while contract sales had grown during the same period.

GfK said that the growth had come from success in the contract market and the demand for smartphones.

The combined growth of contract and pay-as-you-go sales, boosted by below the line promotions, has led to the market’s recovery, GfK added.

However, despite a quarter of success, the future of the market is still not certain. GfK said: ‘Highly anticipated new product launches look set to continue to drive the contract market into growth, but the prepay market may fall back into decline without sustained promotional activity.

'In addition, the looming spectre of the contract lull caused by the mass shift from 18 to 24-month tariffs in 2008 may well see the total market slip back into negative growth later in the year.’

Written by Mobile Today
Mobile Today


Interesting to see handset growth. Any thoughts when difusion of smart phone ownership and usage will be mainstream?
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