Ernest Doku, mobiles expert at uSwitch.com, says: “Dixon Carphone’s modest Q1 results mask an uncomfortable truth that the retailer is having to adapt to a rapidly changing sector.
“While new chief executive Alex Baldock will undoubtedly face some rather probing questions from shareholders today about the hacking of 5.9 million customers’ bank cards in June – as well as the compromised 10 million personal data records – this shouldn’t draw attention from the fact that there are more fundamental issues at play here.
“The mobile market is changing with massive growth in the SIM-only end of the market indicating that customers are increasingly seeking out flexibility in their mobile packages.
“The upcoming arrival of the latest iPhone or Samsung Galaxy still cause a stir, but as developments in mobile tech become less innovative and more incremental, consumers aren’t upgrading for the sake of it.
“Carphone has previously monopolised on consumer hunger for the latest handsets. That model is looking increasingly old-hat – any approach to fixing these legacy issues at the retailer will have to be comprehensive to take advantage of this shifting playing field.”
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Launched in September 2000, uSwitch is an online and telephone price comparison and switching service, helping consumers get a better deal on gas, electricity, broadband, TV services, mobiles and personal finance products including mortgages, credit cards, car and home insurance. Last year we saved UK consumers over £278 million on their energy bills alone.
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