Dixons Carphone has once again horrified the financial sector with a set of results, with the business blaming the rapidly cooling smartphone sector for this fresh batch of losses and general high street sales horror.
A loss of £259m has been recorded for the year to April 2019, with year-on-year earnings from mobile sales down four per cent across the UK and Ireland. And that's not the worst of it either, as chief executive Alex Baldock forecast "more pain" of the metaphorical/financial variety in the coming year, as the company's mobile sales are expected to book a further "significant loss" while it works on renegotiating network contracts offered by its Carphone mobile division.
The key reason for this mobile disaster is how we nurse extra months and years out of perfectly serviceable 2016 and 2017 flagship models and upgrade less frequently nowadays, with this trend fuelled in part by a rise in popularity of 36-month contracts, seeing as the cost of mobiles has rocketed to a point where nine hundred pounds is not considered an unreasonable asking price. We're also buying SIMs and phones separately more often too, slaughtering the cash cow that is massively overpaying each month when hardware contracts expire.
Baldock laments this new wave of savvy consumer and said: "Customers are hanging on to their handsets for longer, in some cases three to four years. Some say this is going to change with 5G but we are not going to be dependent on it." [BBC]