bunny
08-12-2004, 12:16
Taken from mobile today :)
3 sales have passed 160,000 per week in major chains as its cheap handset and discounted line rental deals leave rival operators trailing in its wake.
The 3G operator is now dominating the connection scene after achieving explosive growth in the high street channel, which comprises The Carphone Warehouse, Phones 4u, Dixons, The Link, Argos and Woolworths.
Over a four-week period, sales rose more than threefold from 50,000 to 160,000 per week. Massive volumes were notched up in non-specialist stores, with Argos accounting for 50,000 sales. In Woolworths, 3 is understood to have taken ‘significantly more than 50%’ according to well-placed sources.
Of its rivals, O2 maintained its second-placed position in the major chains, with modest growth from 40,000 per week to 50,000. The rest of the Big Four lagged well behind.
A director at one rival operator said: ‘All of the Big Four would have hoped for 15-20% market share in Argos and Woolies, so everyone has taken a bath on that.’
Virgin Mobile’s sales director, Graeme Hutchinson, said: ‘It comes as no surprise that 3 are having the level of success they are given the aggression and subsidy they are offering. It is way beyond sensible economics.’
However, 3’s growth was so far above forecast that it temporarily ran short of stock last week, prompting a scramble for handsets. However, it is understood to have replenished the NEC e616 and the Motorola C975.
With handsets being sold on ThreePay for as little as £30, there are fears that many will be unlocked and used on other networks.
One Vodafone source said: ‘There is a huge risk with the propositions 3 is putting out there. If you are putting that kind of proposition into the market, expect it to be split.’
He added: ‘With prepay you don’t know what your activation levels are. At Christmas, all of us hold our breath until the day after Boxing Day.
‘You can be the most switched on person in 3 and have your finger on the pulse, and all you would know at this stage is that you’ve sold a lot of handsets.’
3 ‘can handle’ breakers
3 is confident that its surging sales are not being artificially boosted by box splitters taking advantage of high subsidies to obtain cheap phones. COO Gareth Jones (pictured above) said: ‘We’re an experienced management team and we know how this industry works. We’ve taken the appropriate action to ensure that 3 does not become a victim of this kind of activity. 3 has the leading proposition in the market on both contract and ThreePay and we’re very pleased with our progress as we move into the busiest period of the year.’
3 sales have passed 160,000 per week in major chains as its cheap handset and discounted line rental deals leave rival operators trailing in its wake.
The 3G operator is now dominating the connection scene after achieving explosive growth in the high street channel, which comprises The Carphone Warehouse, Phones 4u, Dixons, The Link, Argos and Woolworths.
Over a four-week period, sales rose more than threefold from 50,000 to 160,000 per week. Massive volumes were notched up in non-specialist stores, with Argos accounting for 50,000 sales. In Woolworths, 3 is understood to have taken ‘significantly more than 50%’ according to well-placed sources.
Of its rivals, O2 maintained its second-placed position in the major chains, with modest growth from 40,000 per week to 50,000. The rest of the Big Four lagged well behind.
A director at one rival operator said: ‘All of the Big Four would have hoped for 15-20% market share in Argos and Woolies, so everyone has taken a bath on that.’
Virgin Mobile’s sales director, Graeme Hutchinson, said: ‘It comes as no surprise that 3 are having the level of success they are given the aggression and subsidy they are offering. It is way beyond sensible economics.’
However, 3’s growth was so far above forecast that it temporarily ran short of stock last week, prompting a scramble for handsets. However, it is understood to have replenished the NEC e616 and the Motorola C975.
With handsets being sold on ThreePay for as little as £30, there are fears that many will be unlocked and used on other networks.
One Vodafone source said: ‘There is a huge risk with the propositions 3 is putting out there. If you are putting that kind of proposition into the market, expect it to be split.’
He added: ‘With prepay you don’t know what your activation levels are. At Christmas, all of us hold our breath until the day after Boxing Day.
‘You can be the most switched on person in 3 and have your finger on the pulse, and all you would know at this stage is that you’ve sold a lot of handsets.’
3 ‘can handle’ breakers
3 is confident that its surging sales are not being artificially boosted by box splitters taking advantage of high subsidies to obtain cheap phones. COO Gareth Jones (pictured above) said: ‘We’re an experienced management team and we know how this industry works. We’ve taken the appropriate action to ensure that 3 does not become a victim of this kind of activity. 3 has the leading proposition in the market on both contract and ThreePay and we’re very pleased with our progress as we move into the busiest period of the year.’