Hang on...

Dixons Carphone shares plunge as customers stick with old handsets

THE firm behind Carphone Warehouse were forced to issue a profit warning yesterday after customers were turned off by a wave of boring mobiles.

Shares in High Street giants Dixons Carphone plunged by 25 per cent after the surprise announcement.

Bosses said people were sticking with their old handsets for longer because the latest smartphones just aren’t groundbreaking enough.

Another reason for the company’s woes is a jump in handset prices, after the Brexit vote sent the pound plunging on the currency markets.

Dixons boss Seb James said: “Handsets have become more expensive, whi le technical innovation has been more incremental.”

The company say the average time owners keep their phone before upgrading has gone up from 24 months to 29 this year.

The drop in upgrades comes as Apple, headed by Tim Cook, are reportedly preparing to launch the iPhone 8 next month.

Dixons Carphone have also warned that an EU clampdown on roaming charges will hit their earnings.

As a result, they forecast annual profits will be between £360million and £ 440million, down from £50million last year and below City expectations of £ 460million to £485million.

Analyst Nicholas Hyett of Hargreaves Lansdown said: “The forthcoming generation of Samsung Galaxy and iPhone handsets claim to make big steps forward, but recent history hasn’t delivered much that’s revolutionary.

“Seb James will be hoping Tim Cook has something big up his sleeve.”

Technology journalist Sophie Curtis said: “Everyone is now carrying around virtually identical hunks of metal and glass.”