UK Mobile handsets market continues to grow.
GfK Retail and Technology Global revealed today that for the first time in nearly two years the UK Mobile Handsets market has posted three consecutive months of year on year growth
April, May and June all posted positive growth, with June posting an encouraging 6.8% increase over the same period last year. This turnaround has been fuelled mostly by the ongoing success of the Contract market, which has been in decline only twice in the last year due to the continued demand for Smartphones.
Despite this, the total market has seen a decline due to the large regression of the Prepay market during the same period, which until April had only seen a single period of growth during the last year. However, a series of successful below-the-line promotional activities across the industry has pushed the Prepay market back into growth, taking the total market with it.
The future is still uncertain however: 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.
