Missed connection: Significant competitive pressure has weighed on industry revenue

Although consumer demand has been fuelled by solid growth in the number of mobile connections and continuing advances in product design and technology, these changes have not translated well into the retail market. Instead, industry operators have faced a difficult trading environment. The collapse of Phones 4u in September 2014 caused industry revenue to decline by 17.3% in 2014-15. However, following the sale of Phones 4u retail units, other companies within the industry were able to expand, boosting total industry revenue by approximately 18.8% the following year. Revenue is expected to increase at a compound annual rate of 1.2% over the five years through 2018-19 to £3.5 billion...read more.

Industry Statistics & Market Size
Revenue
£3.5bn
Annual Growth 14-19
1.2%
Forecast Growth 19-24
Profit
Employment
14,108
Businesses
585
Market Share of Companies

Industry Threats & Opportunities

  • The industry has settled following earlier volatility, but growth has been subdued
  • Whilst the market is approaching saturation, older people remain a key target for growth
  • The rollout of fifth generation networks is expected to support industry demand
  • Industry Report - Industry Analysis Chapter

    Competition and subdued economic conditions have negatively affected the trading landscape for mobile telephone retailers over the five years through 2018-19. Industry revenue is estimated to rise at a compound annual rate of 1.2% over the five-year period. This includes a 17.3% revenue decline in 2014-15, which was largely the result of the industry’s then second largest company, Phones4u, entering administration in September 2014. Subdued economic conditions that resulted in disposable income and consumer confidence falling just prior to the start of the period further compounded the industry’s difficulties. In the current year industry revenue is forecast to increase by 1.6% to reach £3.5 billion, supported by low unemployment...purchase to read more.

    Additional Insights for the Mobile Telephone Retailers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mobile Telephone Retailers Industry are

  • Ability to control stock on hand
  • Ability to quickly adopt new technology
  • Close monitoring of competition
  • IBISWorld analysts also discuss how external factors such as Consumer confidence index and Real household disposable income in the Mobile Telephone Retailers industry impact industry performance..

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    What's in this report

    What is the Mobile Telephone Retailers Industry?

    Retailers in this industry sell mobile telephones. The industry does not include mobile telephone services or outlets run by networks (see IBISWorld report J61.200).

    Industry Products
  • Post-pay mobile phones contracts
  • Blended mobile phones contracts
  • Pre-pay mobile phones
  • Industry Activities
  • Post-pay mobile telephone retailing
  • Pre-pay mobile telephone retailing
  • Mobile telephone accessories retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer confidence index
  • Real household disposable income
  • Number of mobile connections
  • IT and telecommunications adoption

  • Current Performance
  • Company collapse
  • Smart retail
  • Data demand
  • Industry competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry consolidation
  • Demand for data
  • Profitability and enterprises
  • Table: Mobile Telephone Retailers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mobile Telephone Retailers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Electronic & Telecommunications Equipment Wholesaling
  • Wireless Telecommunications Carriers

  • Products & Services
  • Post-pay mobile phones contracts
  • Blended mobile phones contracts
  • Pre-pay mobile phones
  • Other
  • Chart: Mobile Telephone Retailers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 25 and 54 years
  • People aged 55 years and over
  • People aged between 15 and 24 years
  • Businesses
  • Chart: Major Market Segmentation for the Mobile Telephone Retailers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Mobile Telephone Retailers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mobile Telephone Retailers Industry

  • Industry Globalization
    Dixons Carphone plc,
  • Table: Dixons Carphone plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Mobile Telephone Retailers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Mobile Telephone Retailers Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Mobile Termination Rate
  • The fee one mobile phone operator charges another for terminating a call on its network.
  • Post-Pay
  • A mobile service whereby the consumer enters into a contract and pays for the services used on a monthly basis.
  • Pre-Pay
  • A mobile phone service whereby the consumer purchases credit to use on a network and does not receive a monthly bill.
  • Smartphone
  • A mobile phone that offers advanced capabilities, often with PC-like functionality.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Mobile Telephone Retailers market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Mobile Telephone Retailers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Mobile Telephone Retailers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Mobile Telephone Retailers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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