RE: Trouble Ahead16 Aug 2017 13:23
right before the merger Dixons and ****hone were worth about the same, so it is not all about ****hone. It was a 50/50 merger.
but it is a big deal! I am in no doubt that mobile networks would like to sell more through their own shops and so pay less commission to ****hone, but in ****hone you can shop all the networks at the same time and get some unbiased chat and good service whilst you are at it. I can't see mobile operators pulling out of the award winning retailer at all. Also services like Geek Squad and extra products on the shelves should pull people in.
If one network pulled out, they could potentially lose out instantly to competition. They would literally all have to do it together. Can't see that happening and furthermore ****hone is not 100% based on UK sales, it is stretched over 9 countries.
I do expect to see worse Q1 results, but so do most, hence the share price? Then beyond that, there are a lot of years ahead who knows.You can only stay on sim only for so long until your phone becomes archaic though, especially with the pace of technology and the sheer amount of wear and tear that phone sustains on battery and hardware. Phones are used constantly. Lots of uninsured phone breakages too, cracked mine on the step the other day so I am probably going to need to upgrade when the time comes as repair is very expensive.
Any choice on mass to keep sim only is therefore cyclical in my view and shares are longer term.
****hone employ 41,000 and have loads of positions advertised in every region I have looked at. Can't be that bad. Can it?