Sales performance management software developer, Callidus Software, believes UK mobile phone retailers may face challenges as consumer attention shifts to the iPhone in the UK.
The major shift in consumer subscriptions and the rush to both provision iPhone customers and offer compelling alternative handsets means mobile retailers face their greatest sales pressure in years, the publishers note.
"Competition in the UK mobile phone retail market has long been intense but the iPhone's arrival has changed the game," said Bill Schuh, vice president for Europe at Callidus Software. "There is a sales frenzy as retailers try both to lure away customers to the iPhone and provide alternatives to it. It means that daily management of how the salesforce and channel are compensated with incentives has become critical. But unless retailers find a more effective, instantaneous way to do this, they face a bleak Christmas once the dust from the iPhone launch has settled."
Schuh continues to warn that mobile retailers will most likely see a shifting subscriber base as customers migrate to an iPhone, and predicts a "sales after-shock" that may last "months or years".
It's not all just reflection, of course, as Callidus offers on-premise and on-demand sales performance management software that enables incentive compensation management, tracking of actual sales versus planned sales and more.
These observtions from Callidus emerge as analyst chatter indicates Apple may be forced to rethink its exclusive carrier strategy as it launches iPhone across Europe.
Apple hasn't yet reached exclusive deals in some key European countries, including Italy and Spain. Gartner analyst Carolina Milanesi notes the problems Apple's exclusive strategy has faced in France and Germany: “Other countries will pick up on what has happened in France. If that happens Apple’s business model will be ruined.”
Milanesi continues: “Apple can’t grow its market share using the exclusive model and might be forced to change the way it does business. I think these latest problems will accelerate that.”