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Phones4u Partnership with Vodafone not Renewed – Dixons Carphone Rejoice

Carphone Warehouse must be loving life right now as Phones4u have now lost Vodafone who will not be renewing their partnership with the retailer. This is not the first contract that Phones4u have lost recently having already lost their O2 partnership – this means Phones4u can now only sell EE, which includes T-Mobile and Orange, and Virgin Media. To add insult to injury, Vodafone have stepped up their partnership with the expanding Carphone Warehouse – or should I say Dixons Carphone.

Phones4u have vocalised their dismay at losing the right to sell any Vodafone service but have said there are looking into other networks and partners to bolster there (now limited) choice of services.

Having said this, things aren’t looking too great for Phones4u – Vodafone have previously stated that they will be opening another 150 own brand stores across the UK therefore upping Phone4u’s competition on the Highstreet. This combined with the ever growing Behemoth that is Dixons Carphone and the fact that Phones4U are pretty much just left with EE who are reviewing relationships with Dixon Carphone and Phones4u at the moment anyway… if I was working for Phones4u I would be yelling abandon ship.

O2’s reason for leaving Phones4u was based on the small amount of sales that the company were responsible for – a meagre 8% of O2’s entire sales last year. Vodafone have not said that proportion of sales is their reason for not renewing their partnership but what other reason can their really be? Maybe they just have had a better counter offer from Dixons Carphone?

Either way, the breaking of the partnership between Vodafone and Phones4u has seen the market value of Dixons Carphone climb up to £4.2bn – probably enough to automatically qualify them for automatic entry to the FTSE100 when next evaluated. So good news for Dixons Carphone then!