The traditional mobile industry is on life support

One analyst said the division was “on life support” in an “evolving” mobile market. It has suffered because people are renewing their handsets less often and demand for mobile contracts is down. Last year, it announced the closure of 92 of its 700 stores. The company – which also owns the Currys PC World chain – added that it was set to take “more pain” in the coming year amid “a deterioration in the forecast performance of the UK and Ireland mobile business”… More here.

It’s the perfect storm which is made up of the following-

We have most of the features we need now and they work at a level that the majority are satisfied with.

People no longer feel the need to be one of the first with the newest phone, and they all lookalike anyway.

The cost of handsets has reached a point where they are viewed as expensive outright which should lead to more contracts, but the perception of high expense transcends to monthly payments as well as the high initial cost.

The likes of Apple are making phones that last for 3-5 years without any problems and the hardware is now at the point that coping with the latest OS time and time again is easy. One small example, my son’s iPhone 6 is working perfectly well and has done since new.

Maybe a new model is needed or just maybe the industry needs to accept the habits of mobile users today, or just maybe 5G will have a bigger impact than we imagine at the moment. Who knows?

Categories: Tech News

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