SIM Only deals threaten handset market

Janet Harris

SIM Only deals threaten handset market
Comparison website is preparing itself for an upsurge in sales for SIM only contracts in 2010 as more consumers are choosing to hold onto their existing handsets in order to save up to two thirds on the cost of their mobile phone tariffs.

The growing demand for SIM only deals, which generally offer shorter contract periods as well as significantly cheaper tariffs, will undoubtedly threaten the production of mobile phone handsets in the future.

This will not be good news for mobile phone manufacturers, which have already shouldered a sharp drop in the shipping of mobile phone handsets in 2009 despite the rising popularity of smart phone technology, according to a report by ABI Research.

Richard Patterson, marketing director for SIM Only Offers says: “In 2009 we saw an increase in SIM only sales every month other than December, when consumers are more likely to opt for a deal with a new handset as they are shopping for gifts.

It seems that, although the majority of consumers are still in the dark about the saving that can be made with a SIM only contract, awareness is most certainly growing.

Mobile phone providers have been quick to invest advertising budget into this growing revenue stream with all five of the major networks and numerous retailers competing for market share.”

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