Retailer predicts sales growth for colour handsets


Mobile phone sales across Europe are likely to pick up in the fourth quarter as consumers upgrade to handsets with colour screens, according to Europe’s largest mobile phone retailer. Charles Dunstone, chief executive of Carphone Warehouse, said he expected sales in the run-up to Christmas to be 5 to 10 percent higher than last year.

Written by The Financial Times for PMN Mobile Industry Intelligence.

Insight

The handset market is starting to grow again. Users who were unconvinced by greyscale WAP services and slow circuit-switched connections are being swayed by multimedia messaging, bright colour screens and faster packet-data connectivity. In Western Europe, Christmas should see strong sales of new handsets, provided manufacturers can meet demand.

Financial analysts are already starting to herald the return of the good times. PMN has seen one research document which predicts 15% year-on-year growth through 2006, driven primarily by the adoption of picture messaging services. There is also a suggestion that upgrade demand for camera phones will help establish higher average selling prices.


Originally published by PMN Mobile Industry Intelligence, the subscription-based analysis and insight platform founded by Marek Pawlowski.
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