back to article Hey Dixons, you know what's mobile? Your rapidly shrinking sales

If ever there was a good time to release bad news, it is today. As luck would have it, Dixons Carphone has filed a set of crappy half-year financials that show the extent of the damage that its loss-making mobile business is wreaking. Group revenue for the six months ended 26 October declined 4 per cent year-on-year to £4. …

  1. Anonymous Coward
    Anonymous Coward

    "giving the 30,000 workers £1,000 worth of shares"

    Is that each or between them?

    1. non_hairy_biker

      Re: "giving the 30,000 workers £1,000 worth of shares"

      Having had the err, pleasure... of working for DSG many, many years ago I very much suspect it will be between them...

  2. batfink Silver badge

    "We've taken great strides in our transformation"

    Usually that translates into " We've laid off a lot of people. We're not sure what they did, or what they were worth to the business, but we've laid off a lot of them and therefore we can claim everything is good again. Plus boardroom bonuses are safe for another year.".

  3. Pascal Monett Silver badge

    Ah, ERP again

    Two large companies merge, two different ERP systems exist. There can be only one.

    Right there is millions, if not tens of millions, of investment thrown out the window. Plus millions more making the side whose ERP is not kept adapt to the new system. With the inevitable remarks of "hey, we can't do [thing] anymore, how dumb is that ?".

    Plus a few more million adapting the remaining ERP to the new company configuration.

    All that for a group that is on the decline. Was merging such a good idea, or is it just better to fail together instead of alone ?

    1. Roland6 Silver badge

      Re: Ah, ERP again

      And there I was thinking the lesson from the 1990's about due diligence was that you needed to look at the IT systems had been learnt, as the costs involved in merging differing systems can wipe out much if not all of the initial cost savings.

  4. Anonymous Coward
    Anonymous Coward

    Surely releasing them tomorrow would be better - today TV media can't discuss politics so they'll be delighted to have a major retailer's misfortune to discus instead.

    1. CSanchez

      This date was in their financial calendar almost 12months ago, i think the election we have known about for 7 weeks. So...

  5. Simon Rockman

    The handset market has got boring. Replacement rates are down, not even Apple can add upgrade sparkle.

    Roll-on the Reborn RAZR.

  6. macjules Silver badge

    Dixon Carphone?

    We used to refer to the stereotypical 'yuppies' as Dicks On Their Carphone.

  7. sal II

    5G Boon?!?

    "That said, analysts have some expectations that 5G networks and devices will be a boon for the smartphone industry next year."

    Really? I see zero incentive in buying a new handset for the upgrade from 4G to 5G alone.

    1. Anonymous Coward
      Anonymous Coward

      Re: 5G Boon?!?

      I see zero incentive in buying a new handset for the upgrade from 3G to 4G alone. TFTFY.

      Seriously, (and I suspect I will be shot down in flames), I can't think of any development in the last 10-12 years that would justify buying a new phone.

      1. CSanchez

        Re: 5G Boon?!?

        Did you just say you haven't seen an difference between 3G & 4G.. 4G has revolutionised the world!

        Havent seen a reason to upgrade in 10-12 years WHAT! Im fairly sure 3G service is only 11years old!!! Plus Google say 60% of data/website traffic is now smartphone based.

        Let me use UBER as an example. They have been able to transform an industry by revolutionising it with 4G/3G technology.

        2nd example Newspapers/Magazines they are all reporting drops on hardcop sales, why we clare consuming the content online FACT. World has changed in the last 6 years with 4G, your just blind to see it

        1. Roland6 Silver badge

          Re: 5G Boon?!?

          >Did you just say you haven't seen an difference between 3G & 4G.. 4G has revolutionised the world!

          I think you are missing the point, albeit a fine one.

          Whilst, there is much from a network perspective that can be done with 3, 4 and 5G, from the handset (ie. mobile phone) functionality viewpoint they aren't that different. The real and noticeable difference being in the performance of both the handset and the data rates and what these enable.

          Personally, I see no point in rushing out and replacing a 4G handset with a 5G handset. Particularly, as I've not noticed any appreciable difference between the 3G and 4G handsets I've been using these last 5 years. But then we forget, 3G only really took off after the iPhone was launched, until then it was largely being treated as additional GSM/GPRS capacity.

          1. CSanchez

            Re: 5G Boon?!?

            You too are missing the point, you are just talking about handsets. Carphone sell network connections, 24m postpay & simo. Tariffs the deals & data (value for money) are all better than than they were 2/4/6/8 years ago... Ie the deals are better.

            Yes the market trend is to hold on to your handset longer, 5G handsets will be a shot in the arm, i don't think it will be as big as the 4G switch, whilst volume will be a challenge, price points & margin on 5G will be stronger.

            Last point, if you think Carphone have it tough look at the margin pressures networks are under. Introduction of bill capping is going to be felt in next years results. Plus the new rules around banning post pay contracts over 24 months and networks having to move people to a simo after 27m (meaning they cant go on over charging customer after the contract minimum term is up)

            1. Roland6 Silver badge

              Re: 5G Boon?!?

              >You too are missing the point, you are just talking about handsets.

              So was the original commenter: "I see zero incentive in buying a new handset for the upgrade from 4G to 5G alone."...

              > Tariffs the deals & data (value for money) are all better than than they were 2/4/6/8 years ago...

              Depends on what you are comparing - Three's "All you can eat" still takes some beating. However, these are simply contract changes (which may or may not come with a handset attached), not reasons to go out and get a new handset.

              >Plus the new rules around banning post pay contracts over 24 months and networks having to move people to a simo after 27m

              I have already been getting this with EE these past 3 years. Interestingly, from black friday shopping, it is clear EE are encouraging families to have one big lead simo (eg. £20 pcm for 60GB) and a set of budget simo (ie. £13 pcm) and you gift data between the SIMs on your account.

            2. katrinab Silver badge

              Re: 5G Boon?!?

              4G is fast enough when I get a decent signal, like at home where it is slightly faster than my fibre connection. Elsewhere, it is not so good. Maybe 5G will help, eventually, but right now, with very limited coverage, it isn’t worth it. Also, there will be some revisions to the standard which will improve things, so it is probably better to wait for them to come out, and for a handset that supports them.

      2. ad47uk

        Re: 5G Boon?!?

        I agree with you , the thing is where do we go from here? sure you can make phones faster , smaller, better displays and that sort of thing, but does it really make much difference?

        i have a P10 lite phone, sure it may not be up to the high priced Samsungs in speed, saying that with all the bloat Samsung comes with, maybe it is, the display may not be such high quality, but the phone still does what it is made for.

        i can still browse the net, still take photos and videos and to be honest the quality is fine, i still watch a video, screen is too small to worry about super duper hires and 4K. i can still listen to music on it and best of all I can still use it for what a phone is made for, talk to people and message people.

        i did get mine from Carphone warehouse/currys, but only because the price was the same as buying it online and i went in knowing what I wanted and did not put up with any sales pitch about insurance and that sort of thing.

        i paid outright and i have a sim only contract with a provider i have been with for a few years.

  8. dogcatcher

    Statues?

    Dixons reported a group statuary loss before tax of £86m.

    I wouldn't buy a Venus de Milo off them

  9. Andy Non Silver badge
    Facepalm

    Waste of space

    Ordered a fridge freezer off them; expecting delivery two weeks later. Got a phone call saying it will be another couple of weeks, so I cancelled the order and placed it with Appliances Direct and got the delivery the following day. A month later I got a letter from Currys/PC World's "Team Knowhow" offering me an extended warranty on the item cancelled a month earlier. More like "Team Clueless".

    1. Anonymous Coward
      Anonymous Coward

      Re: Waste of space

      AO is from the same group and it's brilliant. Surprising they can be so bad.

    2. raglits

      Re: Waste of space

      I ordered a freezer a couple of weeks and reserved for collection in store. Got the text to tell me it was ready for collection and wasted my lunch hour going to store, paying for the freezer and then waiting nearly 30 minutes before being told it wasn't in stock in the store and that I'd need to cancel my order and reserve it from another store that did have it in stock!!!

      My reply was something along the lines of "I don't need to do anything, you need to sort this out. I have paid for an item after being informed that it was ready for collection, therefore you will provide me with said item as I'm not going to reserve online at another store and waste my time and fuel when your system obviously doesn't know what the stock levels actually are" (there was more but that summary will do)

      A short time later I had the freezer I wanted on a next day delivery with a 4 hour time slot. Much to my surprise it did actually arrive during this window but I was not happy in store

  10. Giles C Bronze badge

    Hmm who still uses these companies to buy mobiles, in Peterborough we have bt, EE, O2, 3, virgin, Tesco and probably some more I haven’t thought of shops.

    There is lots of information on the web, so who do you need a shop selling multiple brands - and how does it make any money if the contracts are at the rate as buying directly.

    It was a good business model when it started but these days I don’t think you would attempt to start a similar business

    1. CSanchez

      Because Carphone are cheaper than the network direct, they have a wholesaler style relationship with the networks. Why do we use booking.Com or gocompare.. Because they simplify the market and put all the options or choice in one place and are cheaper than going direct.

      2nd reason (and dont under value this) Impartial advice, go in your local EE store and ask what the best network is around here an EE employee will say EE, repeat in O2/Voda/3.. My bet you will get 4 different answers

    2. katrinab Silver badge

      You get an unlocked phone if you buy from Carphone Warehouse. Prices in my experience are generally about the same as from online retailers.

  11. sales@

    Dixons Loss

    I'm with Andy Non; so sad about a statuary loss . . . .

  12. Anonymous Coward
    Anonymous Coward

    I am in the unhappy position of having a deposit for a phone locked in their ERP system.

    I have an order number. The order went to the warehouse. The system acknowledged my order was placed but not shipped to my local store for collection.

    There has been a delay.

    I contacted their Customer Services and was told to go to a store and cancel my order as goods not delivered.

    It turns out that nobody in the organisation : local staff, Corporate IT or other departments can cancel the order because they dont have the IMEI of the phone available to cancel the order. The IMEI doesnt exist because the phone that fulfils my order doesnt exist. The ERP system refuses to accept cancelling an order without that IMEI...

    The ERP system looks suspiciously like an old IBM line edit mainframe terminal emulator layered on Windows XP .

    Myself and two members of staff spent about 45 minutes trying to get the order to go away so I could actually leave the store with a phone. Several phone calls, including to other store managers to see if they knew, and still no progress.

    They also refused to honour the 'Black Friday' deal on which I ordered the phone, so any other phone will be at least 10% more expensive.

    1. Roland6 Silver badge

      >I am in the unhappy position of having a deposit for a phone locked in their ERP system.

      Well, depending on your payment method, you may have recourse via your bank, as the goods haven't been delivered within the contracted timeframe.

      >The IMEI doesnt exist because the phone that fulfils my order doesnt exist.

      Perhaps someone in the warehouse needs to take delivery of new stock so that 'the phone' now exists - from an ERP system perspective, so that either the order can be fulfilled or cancelled.

      Aside: Glad I failed to place my black friday order with CPW/Dixons and so had to shop elsewhere - phones delivered.

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