Revenues at mobile phone retailer Carphone Warehouse fell by 5.5 per cent last year after it failed to offer cheaper alternatives to the iPhone.
A lack of £100-£150 pre-pay smartphones, along with the weak European economies, helped push sales down to £3.3 billion in the year to March 31st, according to chief executive Roger Taylor.
However, he said there is reason to be more optimistic about the increasing availability of lower-priced mobile phones in the coming year.
Carphone Warehouse is the biggest phone retailer in the UK and it stated that underlying pre-profits rose by 3.5 per cent to £58.3 million last year.
Analyst at Barclays Chris Chaviaras told the Financial Times that the products on display at the mobile phone industry's trade show in Barcelona suggested more budget devices would be available this year.
"Christmas is when you see how the pre-pay segment will do, and it's important to have a range of products and prices. This was what was lacking in 2011," he was quoted as saying.
Posted by Samantha Green