Feeds

phones 4U declares price war on CPW

£20m campaign

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

phones 4U is slashing handset prices in a bid to leapfrog Carphone Warehouse (CPW) into UK market leadership.

phones 4U is to spend £20m on the campaign, called phones 4 Less. It could use up its war chest very quickly if the competition responds in kind, for the company is guaranteeing to undercut all competitors on handset price. If a customer buys a phone and finds the same model cheaper elsewhere, phones 4U will refund the money and shell out another 20 per cent of the value of the phone.

phones 4U is currently the UK's second biggest phone retailer with 17 per cent market share, compared with CPW's 22 per cent share.

CPW is certain to respond if it feels threatened. But does this mean it would have to cut prices in all shops, or merely in areas where there's a phones 4U in the vicinity? We should note that any price war is not bi-polar - this will draw in The Link and the indies. So if phones 4U is to gain market share, then this will not necessarily come at CPW's expense.

So why is phones 4U turning the price screw? Judging from comments made by Anthony Catterson, MD, the company is deploying attack as the best form of defence. "We need to be market leader. It is a very tough market out there and we think there is going to be a lot of consolidation over the next 18 months. Increasing our market share is the best way to protect ourselves in that environment." ®

Security for virtualized datacentres

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.