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Carphone Warehouse Wins Back Vodafone

Carphone Warehouse Wins Back Vodafone Vodafone has today returned to The Carphone Warehouse, nearly three years after shunning the mobile phone outlet in favour of Phones4U.

In the current economic climate, there has been a decline in the demand for new mobile phones and Carphone has been hit hard by this. Carphone is the largest privately run mobile phone outlet in the UK and winning back Vodafone should help increase its sales.

Since Vodafone made its exclusive mobile phone contracts deal with Phones4U, Carphone has only been able to sell Vodafone’s pay-as-you-go mobile phones and upgrade the contracts of existing Vodafone customers. As a result of Vodafone’s return, next week will see Carphone selling all the mobile phone network’s different contracts, both in its stores and online.

Vodafone's exclusivity deal with Phones4U in 2006 whilst initially lucrative, restricted Vodafone's presence in the mobile market. The mobile phone network now wants to focus on gaining greater awareness and buy-in in the UK market.

Vodafone chief executive, Vittorio Colao said that the fierce rivalry between the different mobile networks in the UK made it one of the hardest and most competitive markets to conquer.

Vodafone hopes their return to The Carphone Warehouse will help both its brand positioning and sales. The firm is apparently excited by the mobile phone retailer’s new “concept” stores, along with its scheme to create some bigger stores on the outskirts of towns.

Whilst this is obviously good news for Carphone, it is bad news for Phones4U. In a competitive market and a decline in mobile phone demand, the firm is struggling. In addition, Carphone has the exclusive deal with Apple to stock the iPhone.

Vodafone news posted by Romany on 03 July 2009

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