Posts Tagged ‘Phones 4u’

Phones4u goes into administration

September 15, 2014
Phones4u closed

Phones4u closed

If the mobile network operators decline to supply us, we do not have a business. — Phones4u chief executive David Kassler

Yet another shop closes in Aldershot.

For once, Aldershot not to blame, this is a case of yet another High Street chain closes.

Few will miss Phones4u, it is another mobile phone shop gone from our High Streets, another ghastly chain that drains money out of our town centres gone.

Phones4u will be no more missed than was HMV or Jessops.

Will WHSmith be next? A prime example of a failing High Street chain.

I have never used Phones4u, but from comments posted, it would seem few will miss, a bad employer with zero-hours contracts, poor service, shady practices like forcing insurance onto customers when covered by warranty.

Phones4u blame ee and Vodafone pulling the plug.

Dodgy insurance scam, investigation by FCA and massive payouts may also be an issue.

And that owned by Vulture Capitalists.

Phones4u was never going to be viable, when all it did was sell contracts for the networks, networks that have their own shops.

The only location a Phone4u store would be viable, would be where there would not be a customer base to support an exclusive network shop, but sufficient for all networks in one shop. But when we see mobile phone shops dominating the High Street, Phones4u must be surplus to requirements, as it is costly duplication.

This now raises a big question mark against Carphone Warehouse, as their businesses model is the same as Phones4u, selling phone contracts for the mobile phone networks.

The merger of Carphone Warehouse with Dixons never made sense, on the other hand, if they were no longer going to have anything to sell, then yes, it made sense, leaving Dixons with a worthless retail chain.

If and it is a big if, Phones4u would be viable were they to sell unlocked phones (deal direct with phone companies and bring in cheap smartphones from China) and supply sim cards.

Unlocked phones worth considering

  • Moto G
  • Fair Phone
  • Google Nexus 5

Recommended tablet

  • Google Nexus 7

Contracts were always a massive rip-off, that is why the companies were so keen to push them, as a lot of money to be made. Users are nearly always better off buying an unlocked phone and a pay as you go sim from Lebara or Lycamobile.

Note: LycaMobile a tax-dodger and major Tory Party donor.


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