A mature market is dampening revenue, but smartphones are helping demand.
London, United Kingdom (PRWEB) September 23, 2012
Mobile phones have become the latest must-have item of the modern world over the five years through 2012-13. Although solid growth in mobile connections and continuing advances in product design and technology has fuelled consumer demand, these conditions have not translated into the retail market. Instead of experiencing record sales, operators in the Mobile Telephone Retailers industry have faced a difficult trading environment and revenue is expected to decline at an annualised 6.1% over the five years through 2012-13. According to IBISWorld industry analyst Claudia Burgio-Ficca, “despite stronger consumer demand, revenue growth has been affected by mounting competition between operators, which has led to declines in the average price of phones and falling product margins”. Revenue has also been influenced by trends in real personal disposable income and consumer sentiment.
Mobile telephone retailers are forecast to experience marginal annualised revenue growth over the five years through 2017-18. Following declines in 2013-14 and 2014-15, revenue will trend upwards through to 2017-18. Burgio-Ficca adds, “demand will be driven by the continuing popularity of smartphones, which are being billed as the mobile device that all consumers will need and want”. Sales will also be driven by changes in the way consumers use their mobile phones; consumers will increasingly demand mobiles to undertake e-mailing, rich messaging and social networking. Given the success of online shopping, future growth for the industry will include the application of mobiles to shopping, such that consumers will be able to purchase goods using their mobile phones. Demand for mobile commerce (m-commerce) will also be driven by an increase in the number of retailers offering it.
The Mobile Telephone Retailers industry has a medium level of market share concentration. Industry retailers have faced a tough trading environment over the past five years. Increasing and intense competition from internal and external players has eroded the market shares held by the industry's top players, which will reach a combined share of 47% in 2012-13. Internally, operators faced competition from other industry players that offered similar pricing strategies, promotional bundles and contract terms. Externally, the industry came under mounting pressure from mobile network operators that sought to attain a larger share of the mobile telephone retail market. Concentration was also influenced by merger and acquisition activity in the industry, larger more profitable players effectively purchased smaller operators. Major companies include Carphone Warehouse Group and Phones 4U.
For more information on the Mobile Telephone Retailers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Retailers in this industry specialise in the sale of mobile telephones, including the sale and installation of mobile telephones in motor vehicles. Goods are purchased from wholesalers and then sold via retail outlets, direct marketing or via online sites to consumers for personal and business use.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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