Eurostar Global Electronics is preparing to move into its brand new state-of-the-art headquarters at St Modwen Park in Stoke, from its current location in nearby
Lymedale Business Park.

The HQ, which is in the centre of the country and close to partners, boasts 43,000 square feet of space.

The move to a bigger warehouse had been planned for some time and is key to the firm’s plans for future growth, says managing director Pete Carnall.

“We’ve reached optimum capacity in the existing facilities at the revenues that we have reached,” he said. “It was imperative to get more space to develop the business and
what we can do for customers.”

Revenue

Last year, Eurostar Global generated £125 million in turnover. “We can develop to become a technology service partner, as well as a hardware technology distributor,” says Carnall, who
formed the company with sales director Brett Watmough in 2007.

“Our team has diverse skill sets and can offer a great service package to our partners. We want this facility to handle services, whether reverse or third-party logistics services, distribution or anything else relating to the management of products.”

Interestingly, he wants no involvement with service and repairs. “We have no interest
in operating in repairs,” says Carnall.

“There are local businesses in the repair sector doing a great job. Repairs are not our forte; we are all about distribution, logistics, systems, technology services and hardware.

“Distribution is still Eurostar’s bread and butter, and will continue to be.” Carnall adds: “Over the last five years, people have down-talked distribution like it no longer matters. They have forgotten what the value of a true distributor is.

“For some companies, mobile has become less relevant. Convergence has left us with massive IT distributors which just have a mobile department, but mobile distribution is more than a department; every consumer has a mobile device and there is a requirement for specialist distribution that deals with mobile in a bespoke way.”

Eurostar’s portfolio of vendor partners includes Sony, OnePlus, Alcatel, TCL, Emporia Telecom and IMO.

It also works with Bullitt Group to distribute Cat and Land Rover rugged phones.

Eurostar is looking to add to this list, but is careful about choosing the right partners
to avoid conflict with its current portfolio.

“We don’t want to create any conflict across the vendors,” says Carnall. “We carefully think about those we want to work with. There’s no point in putting devices into the channel that will cannibalise another brand in our portfolio.

“We look for where a vendor can add market share and fit their products into the channel.”

In one key move with a vendor over the past year, Eurostar became an official Sony Mobile distributor for the UK last October.

“This partnership with Sony was important,” says Carnall. “Sony is a premium product vendor and part of an AV [audiovisual] brand that delivers high- quality components.

“The company still has prominent brand awareness and its history goes back decades. The market may think that mobile is only about two vendors, but it’s not.”

Carnall adds that Eurostar’s deal also includes Sony AV offerings such as headsets, although not the likes of PlayStation consoles.

Secondary market

One sector of the mobile industry that Eurostar doesn’t talk too much about is the
refurbished sector.

“We have a strong presence; it’s just not something we shout about,” says Carnall.

“We already procure and deal with major partners, and the financial services and insurance sectors are some of our primary clients.

The expansion of our facilities will expand the scope for us to do this across Europe.”

Carnall points out that a circular economy also has to start with a new device, as there
cannot be a secondary device without one.

“A refurbished industry still needs new phones, which is where Eurostar comes in,” he says. “To have consistent growth, there must be sales of new devices: there’s a chain in place.”

Meanwhile, Carnall sees the refurbished sector as an opportunity rather than a threat.

“If a distributor doesn’t have the skill sets to manage more than just shifting boxes, they will limit their market opportunities,” he adds.

“We started out buying end-of- life products, but we had the ability to reconfigure devices, so we’ve always been capable of managing devices.

Batteries and VR

Eurostar is also keeping its eye on the development of power-based products and battery technology.

“There’s a lot of focus for us on battery- related technology,” says Carnall. “We’re watching the evolutionary steps of battery technology and how that will affect products in our sector.”

Another area that Carnall is keeping an eye on is virtual-reality tech, which he expects to break into the mainstream after years of undelivered potential.

“VR has been around for a long time now, but it’s never evolved to a state of what I’d consider to be a mainstream day-to-day product,” he says. “I think this will change
in the next five years.”

Carnall expects the growth of VR products, events, accessories and software that combines these products to underpin a whole wider marketplace for VR to integrate with mobile and wireless devices.

Pandemic

Talking of how the firm has dealt with the pandemic, Carnall says Eurostar has been able to maintain an edge over some other distributors during this period.

In fact, he says, “it played in favour of our business model. We’ve spent a lot of time
understanding the international markets and procuring directly from the European market.

“Eurostar was able to get stock from Europe, so while other distributors struggled with delivery issues, Eurostar was able to plug the gap.

“We provided contingency deliveries for networks and retailers, and we were able to support partners who couldn’t get products from their regular supply chain.

They have seen what Eurostar can do and are looking to work with us directly as a result ofthis experience.”

Carnall also says that his team was key to maintaining a high level of performance during
the pandemic.

“There was an unwavering level of determination to ensure that the pandemic wasn’t going to disrupt the levels of service we strive to deliver,” he says.

Carnall adds that Brexit has had little impact on the business in terms of sales.

“We still procure products from European partners,” he says. “Our independent
procurement and direct vendor procurement haven’t been affected by Brexit.”

As part of its strategy aiding movement of products, Eurostar has a Netherlands-
based company, Eurostar Global BV, to ship products into Europe overnight through
Schiphol airport.

Planning for growth

Meanwhile, in line with its bid for growth, Eurostar plans to increase staffing numbers of 65 by 20 per cent in the next six months.

And while he is excited about the various forward-looking opportunities ahead, Carnall and his Eurostar team are most excited to get going at their new home, where the distributor hopes to fulfil all its aims and visions.

Chinese premium vendor to develop range of more affordable devices

Chinese smartphone vendor OnePlus has appointed Eurostar Global Electronics as its official UK distributor.

OnePlus is based in Shenzhen, Guangdong and was set up by Pete Lau and Carl Pei seven years ago. It now operates in 34 countries and regions around the world.

It adapted a novel marketing model of developing an engaged community of fans and now has including 13 million forum members from more than 183 countries, who guide new product development through their feedback.

“OnePlus is an incredibly exciting brand and we will be able to build on their already impressive B2C success. We look forward to promoting the products into our extensive industry-leading B2B customer base,” said Eurostar Global Sales and Purchasing Director Brett Watmough.

Key market

Tuomas Lampen, Head of European Strategy for OnePlus, said: “The UK is a key market for OnePlus We’re pleased to have Eurostar Global Electronics working with us to bring our Never Settle product experience to new customers. We are creating more affordable devices like OnePlus Nord, OnePlus Nord N10 and OnePlus Nord 100 to sit alongside our flagship OnePlus 8 Pro and OnePlus 8T, and with Eurostar, we are excited to introduce the OnePlus experience to even more people.”

Eurostar Global Managing Director Peter Carnall (pictured) commented; “OnePlus deliver that all-important combination of value for money, premium build and specification on devices without any compromise on brand recognition. OnePlus has a brand that represents the “smart” choice. There is a seriously cool message from OnePlus, that through the careful range and product development, shaped by community engagement has carved a real niche in the mobile arena. OnePlus has solid foundations, a great future ahead of it and Eurostar are thrilled and focused on being a successful part of their journey.”

Steve Hankey, Head of Commercial and Vendor Management added: “I am absolutely delighted and incredibly excited to be able to bring OnePlus to the Eurostar portfolio. We have been watching OnePlus closely over the last 12 months and have been singularly impressed with the level of quality and innovation that the brand has produced. It is no wonder that OnePlus has rapidly established an extremely loyal fanbase across the world and myself and the rest of the Eurostar team are eagerly looking forward to helping the brand on its next evolutionary journey in the UK.”

Eurostar Global Electronics is hoping to build on a year of impressive growth despite the uncertain economic conditions.

The distributor saw turnover for its most recent financial year hit £103 million, an increase on £88 million the previous year.

Although its financial year ended in April this year, Eurostar has seen no slowdown in business throughout lockdown. According to sales and purchasing director Brett Watmough (pictured), sales for May and June show a year-on-year sales increase of 10 per cent.

Watmough added that there are “several new major customers due to transfer business to Eurostar in the next few weeks,” although he did not disclose which ones.

“Amongst other things, I attribute this success to a focused team with a combined experience in mobile of well over 300 years, with the desire to deliver for customers and vendors alike,” he said.

“To move from £27.6 million in turnover to more than £100 million in four years is phenomenal,” added Eurostar’s head of retail Dave Copestake, who added that business had grown “across the board”.

Currently, Eurostar’s sales and management teams are working from home, while the warehouse and technical teams remain at its offices under strict social distancing and hygiene measures. Copestake believes that the office will be in full use again by the end of the year.

As well as onboarding new clients and continuing to grow sales, Eurostar will also market its internally developed Enterprise Resource Planning (ERP) system, named Escape, under licence. Although it was built with mobile distribution in mind, Eurostar says it can be tailored to work for different channels and industries.

Earlier this year, Eurostar took home the Mobile News Award for best Mobile Device Distributor – Under 100 Employees.

Eurostar has continued its recent spate of partnerships with the announcement that it is an official UK distribution partner for TCL’s Alcatel Mobile.

The partnership is Eurostar’s third significant partnership in the past three months, following its deals with Lease Telecom and Cat and Land Rover brand licensee Bullitt Group.

Eurostar managing director Peter Carnall said the vendor’s range of wearables and connected devices as well as its mobiles meant it was a good fit for Eurostar’s growth plans.

“Eurostar is thrilled to partner with Alcatel Mobile and as the Eurostar business looks to bolster its branded portfolio of products to its customers, the future growth of Eurostar is in working with partners that have a strength in not just mobile, but in wearables and connected devices,” he said.

“Alcatel products appeal to a vast range of users and are backed by a trusted Tier 1 manufacturer. As a business, we are highly focused on building lasting partnerships of value to the brands we choose to work with and we welcome Alcatel Mobile to the Eurostar portfolio.”

Eurostar’s head of commercial and vendor management Steve Hankey added: “Alcatel is a highly respected brand in the UK in both B2B and retail channels – Its diverse product portfolio consisting of mobile, tablet, and mobile broadband further enhances Eurostars already significant offering out into the channel.”

Alcatel handsets will be available from Eurostar in Early December. The distributor turned over £89 million last year, and Carnall has described 2019 as a “record year” for the company.

Bullitt Group has appointed Eurostar Global Electronics as an official distribution partner in the UK.

The rugged manufacturer and licensee for the CAT and Land Rover brands is celebrating its 10th year in business. It is returning to revenue growth since founders Colin Batt, Dave Floyd and Richard Wharton bought it back from private equity firm Exponent.

Eurostar Global turned over more than £89 million in 2018 and also acts as UK distributor for Avenir Telecom’s Energizer phones. It recently announced a partnership with leasing solutions specialist Lease Telecom.

Bullitt phones will be available at Eurostar from early October.

Eurostar Global managing director Peter Carnall commented:
“2019 continues to be another record year for Eurostar. Investment throughout 2018 in both the management team and core services has seen Eurostar build a solid presence with a loyal customer base across the UK. We are focused on building partnerships of value and delivering more to channel for the brands that choose to work with us and we welcome Bullitt Group to the Eurostar portfolio.”

Eurostar’s head of commercial and vendor management Steve Hankey added: “Having worked with Bullitt Group since its very beginnings I am incredibly proud and excited to be welcoming them to the Eurostar family. Bullitt has a well established and diverse product portfolio that appeals to many sectors. The whole team are eagerly looking forward to working with Bullitt to help drive the brand even further.”

Nearly three years since the UK voted narrowly in favour of leaving the European Union, that exit is – supposedly, at least – nearly here.

In the referendum vote in June 2016, the ‘Leave’ campaign narrowly edged out ‘Remain’ by 51.9 to 48.1 per cent, with over 17.4 million people voting for the UK to leave the EU.

Since the results were confirmed, British politics has been dominated by the so- called Brexit, with debate after debate in the House of Commons over how to secure the best outcome for the country.

Prime Minister Theresa May has already seen two proposed Brexit deals rejected by fellow MPs, with the process proving anything but straightforward and causing uncertainty for UK businesses.

There have been debates over a hard or soft Brexit, as well as several calls for either a second referendum or a “people’s vote”, with MPs voting in March to seek a three-month delay to Brexit until June 30.

With so much uncertainty, what does this mean for UK telecoms and its consumer and business-to-business markets?

TRADE AND SUPPLY

Trade between the UK and member states is expected to become disrupted as Britain exits the EU – which has effectively become a single market in which goods and people can move around as if within a country.

With the UK set to leave, many also expect the value of the pound to suffer against the euro – at least in the short term.

This is a “real concern”, says Nigel Prince, managing director at distributor New Way International. “There’s a big worry about how the currency will become affected as result of Brexit. It’s a real concern how strong the pound will be against the euro and US dollar.”

There may also be supply chain issues, says Imran Choudhary, director for technology at research company GfK.

“Aside from the currency, other negative impacts are likely to include disrupted supply chains and logistics, and higher admin costs,” he says. “For the B2B industry it will have an impact on what it will be able to export.”

In addition, concerns have been raised over a potential return of roaming charges for using data when abroad in the EU.

However, Three (for one) has announced that it will not add any additional roaming costs, regardless of the final Brexit outcome.

Three CEO Dave Dyson said “We’re committed to eradicating excessive roaming charges and will retain this customer benefit regardless of Brexit negotiations, allowing our customers to continue using their usual allowances when they travel within the EU.”

Following Three’s announcement, CCS Insight senior analyst Kester Mann believes it will be difficult for any of the other operators to apply additional costs for roaming.

“I don’t think operators will revert to this, as the UK is such a competitive market – plus these operators already offer roaming outside the EU as a differentiator.”

“In theory the operators could introduce this but if the operators backtrack on this because it could be risky for them.”

CONSUMER CONFIDENCE

There are also questions over consumer confidence during the period of uncertainty caused by Brexit.

This comes on top of several factors that have already contributed to a decline in the UK smartphone market in recent years, as it has matured.

Increased product lifecycles, better hardware and higher prices have led to consumers holding onto their phones for longer – and Mann believes that although these struggles would continue even in the absence of Brexit, the UK’s departure from the EU will not help the market.

“The downward trend will continue with or without Brexit, despite the innovation we saw at the Mobile World Congress,” he says. “However, with Brexit we might see that consumer confidence won’t be as strong, as people will be more nervous about making big investments.”

Choudhary, meanwhile, says that British consumers have been “stoic” in the face of the unknown, but does foresee a downturn in SIM-free handset sales.

“These sales will come under increasing pressure,” he says. “They are currently on a growth trajectory, but this could be dampened by Brexit. Consumers may be less likely to spend money on brand new phones.”

PLANNING AHEAD

With Brexit looming, many businesses will have planned for the future with this in mind – something that has been the case for New Way.

The distributor, which has a business in Germany, opened a further centre in the Dutch city of Rotterdam in September.

In the event of Brexit, this international presence also offers backup for the business, including staff, logistics functions and a warehouse.

Despite not being too concerned about the UK’s departure harming how New Way operates, Prince says that having a plan to cater for it is essential.

“We’re one of the more fortunate UK businesses, as we already have an established business out in Germany,” he says. “With this, we have staff, logistics and a warehouse, and this offers us a backup plan.”

Prince adds: “We’re ready to do what we need to do, whether that is moving stock around or selling stock in Europe directly.”

Meanwhile, vendor Alcatel has said it has been planning ahead for the worst-case scenario in the event of Brexit, inlcuding for the possibility of a no-deal outcome.

At the Mobile World Congress, Alcatel’s UK and Ireland country director William Paterson told Mobile News that the firm has planned for the worst when it comes to potential stock issues.

“We planned and reorganised the supply chain to bring in products in a sufficient manner,” he said. “We will be bringing products directly from China to the UK and avoiding customs in Paris.”

5G QUESTION

There is also a question surrounding whether Brexit will affect the launch of 5G in the UK, given the investment required at a time of uncertainty.

Operators EE and Vodafone plan to debut the technology this year, with EE launching in 16 cities and Vodafone in 19 this year.

Mann doesn’t believe, however, that 5G rollout will be affected, as the infrastructure is already in place.

“I don’t expect 5G to be impacted by Brexit,” he says. “EE in particular is determined to be at the forefront of this and Vodafone isn’t far behind.

“It seems to be full steam ahead for 5G, and the operators seem to be pushing on with plans rather than reining them in. It appears that Brexit isn’t influencing this, which is quite encouraging.”

Choudhary agrees, adding that he doesn’t think the UK will fall behind with 5G because the investment has already been put in place. 

“5G is critical to the development of the mobile industry,” he says. “The capital expenditure required for 5G has already been thought of and all the mobile operators are working towards this.” 

Choudhary does, however, believe that the Brexit situation could affect SMEs and larger businesses.

“Brexit might have a broader impact on the SME and corporate landscape in the UK, as a lot of these businesses might be planning investment in IT and telecoms infrastructure,” he says. “The uncertainty around Brexit might put them off investing in 5G hardware.”

BRIGHT SIDE?

While Brexit is anticipated to be a challenge for the UK’s telecoms industry, will there be any positive outcomes for the telecoms industry?

Some think so – or, at least, that the impact will be relatively neutral. Edward Elliot-Square, sales director at phone trader IPT.cc, says, for instance that the uncertainty doesn’t phase him.

“I’m not worried at all,” he says. “I think it is going to be positive for the industry if anything, in particular for the mobile industry.”

Elliot-Square believes the UK will be able to control its own laws and regulations, and could even become a focal point for trade.

“There will be new rules to adhere to, but this might even see the UK become a trading hub, the likes of which we see in Switzerland and Dubai,” he says. Under this scenario, he explains, other countries could “trade with confidence” with the UK because they would be dealing only with that country.

Elliot-Square also believes that from a mobile manufacturer perspective, little will alter.

“Most, if not all, of the mobile manufacturers are outside the EU, so nothing is going to change. There’s no duty on the movement of mobile phones across Europe, so I don’t see how there can be an issue with Brexit,” he says.

Eurostar Global Electronics MD Peter Carnall, meanwhile, says it will be “business as usual” once the UK leaves the EU.

Carnall shot down fears that Brexit will slow down goods entering the UK and revealed that the distributor has explored contingency options over the past two years.

“There’s not going to be a delay on products entering the UK; if we leave the EU, the goods will still come to us at the same speed they do now,” he says.

“There’s a fallacy that the doors are going to come down and goods will take forever to be shipped. I don’t think the UK government will allow that to happen.”

WAITING GAME

Although it is difficult to forecast the UK’s future with Brexit on the horizon, the shared feeling among those in the mobile industry is therefore that the impact won’t be too detrimental.

But Choudhary thinks it is a case of playing the waiting game before the full implications of Brexit for the mobile industry can be determined.

“Although most businesses will have planned for Brexit, it’s difficult to know exactly what will happen, and the long- term effects won’t be known for years,” he says.

He believes the final impact of the UK leaving the EU will hinge on how much of a hit there will be on consumer and business confidence in spending.

When Apple CEO Tim Cook announced on January 2 that the Cupertino-based juggernaut had revised its expected revenue for the last quarter down by £3.83 billion to £64.3 billion, it was seen as a concerning start to the year for the company.

As a result, share prices crashed by nine per cent overnight, with Apple pointing the blame at the Chinese economy experiencing a slow second half in 2018.

Cook told Apple investors that the company “did not foresee the magnitude of the economic deceleration, particularly in Greater China”.

Although shipments of Apple smartphones appeared consistent throughout last year, the tech giant dropped down to third place for overall market share, after Huawei claimed second.

Apple’s recent problems have caused many to question whether its time at the top of the smartphone market is under serious threat for the first time.

Slowing market

A number of factors have contributed to Apple’s slump in expected revenue, with a slowing global handset market most likely the main culprit.

Combined with higher prices and a perceived lack of innovation among some observers, this has hurt Apple.

Figures from the third quarter of 2018 reflect how the smartphone market has stalled over the past year.

In that quarter, 386.8 million smartphones were shipped globally – a three per cent decrease, according to Counterpoint Research.

Closer to home, Brexit could cause future concerns in what is a key market for Apple, says Eurostar Global head of commercial and vendor management Steve Hankey.

“It’s a market that is contracting, and the uncertainty around Brexit has contributed too, with people more likely to keep hold of their cash,” he says.

It will affect all aspects of businesses across the UK, while not many people will have £1,000 of disposable income to spend on the latest iPhone devices, adds Hankey.

Julian Shovlin, founder and managing director of tech repair specialists iSmash, doesn’t believe, however, that cost will deter iPhone fanatics.

“I’m not too sure the price point has been a determining factor for Apple, as customers are willing to pay for high-end devices. There is still a demand for this and Apple is good in this area,” he says.

Innovation

Apple has also been questioned by some observers over a perceived lack of innovation with the iPhone XS that was released last September.

But IDC senior analyst Marta Pinto argues that Apple, although conservative in its approach, is still a key innovator in the industry and expects this to continue.

“I wouldn’t say Apple hasn’t innovated. If you look at the notch display it launched in 2017 with the X, Apple essentially set the industry trend for 2018,” she says.

“Apple might not be the greatest disruptor in terms of innovation, but it is still innovating; it’s just not as noticeable to the end user.”

Hankey says that although it has proven difficult for manufacturers to innovate in recent times, Apple needs to differentiate to make its smartphone stand out.

He explains: “Apple needs to refind some of its form. What made Apple so great in the smartphone market over a short period of time was its ability to innovate and stand out from the crowd.”

According to Hankey, the disappointing financials may have been due to a lack of innovation with the iPhone XS.

“It’s a contributing factor. I can’t see how Apple can keep differentiating every year, with 2018 proving to be a refinement year for Apple,” he says.

Change to financials

While Apple will continue to be a serious player in the smartphone game for the long term, it has decided to report its financials differently.

The company no longer reports iPhone, Mac and iPad unit sales, something that may suggest Apple is heading in a different direction with its approach – one in which it desires value over volume.

At the Consumer Electronics Show in Las Vegas this month, Apple announced that it had tied up a deal with rival Samsung that allows owners of Samsung Smart TVs to have direct access to iTunes content.

For independent technology, media and telco, this represents a different channel for Apple to tap into and an even wider target audience, as he urges Apple to focus on services across all areas, including music and video games.

“This is where the company can use its heritage to innovate further by bringing together a range of services and tightly integrating them with its devices,” he says. “As well as making them available on other platforms to seek new audiences.

“The time has come for Apple to make a multibillion-dollar acquisition in the TV/video landscape – more so if it has serious aspirations to compete in this space.”

Pinto agrees and labels the company’s approach as “efficient”.

“Apple is still a very strong company and its business is shifting; smartphones are just one of many areas Apple can excel in,” she says.

“The smartphone market has plateaued, and this has forced Apple to turn its attention towards different revenue streams such as services and wearables. This is a key part of Apple’s business.”

Shovlin shares that opinion, while expecting iPhones to still be a pivotal product for the long-term.

“For the foreseeable future, the iPhone will still be Apple’s hero product, but Apple has other revenue streams such as accessories.”

China situation

One of the biggest hurdles that Apple is likely to face in the coming years isn’t so much one of its own making.

The ongoing US-versus-China trade war could hit Apple hard – and with the company citing the Chinese market as a key reason for its revised financials, this is likely to be an issue in the future.

Pinto believes, however, that China has more to lose than Apple from this situation.

“I think the trade war will eventually hit the market share of Western companies in China if things continue,” she says.

“However, Apple phones are assembled in China, so this would hurt China’s market more than any other.”

The unexpected deceleration in the Chinese market presents an additional challenge to Apple, says Pescatore.

“The heightened political tensions between the East and West, as well as econmic uncertainty, are factors that have contributed to the ongoing challenges in China.”

The unexpected stall in China was even more surprising given that the country’s smartphone manufacturers enjoyed a fruitful time in 2018, with Huawei in particular impressing to claim second place for global market share.

Huawei claimed 13 per cent market share in the third quarter of 2018 – one per cent more than Apple – but Pinto says Apple desires value over volume and that “market share isn’t everything” for the company.

IDC stats show that the market share of iOS users slightly increased in the third quarter of 2018 to 25.6 per cent, up from 25.2 per cent in the same quarter of 2017.

Despite Huawei, Xiaomi, OnePlus and OPPO entering more markets and providing a different consumer option, Shovlin expects Apple to see off this challenge.

“There is an increased amount of competition now coming from China – in the UK in particular,” he says. “However, I believe Apple has the resources and know-how to overcome any challenges.”

Loyalty push

During an interview not long after Apple wrote to its investors about the revenue revision, Cook told a CNBC journalist that Apple’s three most important focuses are “innovation, satisfaction and customer loyalty”.

The last of those – loyalty – is something that Apple has found in abundance from its fanbase globally, and Hankey expects Apple customers to stick around for the long term.

“It is difficult to get people away from Apple and its ecosystem, and although people might not upgrade as quickly, they are more likely to stick with iOS than look elsewhere.”

In fact, Pescatore believes that Apple has become a victim of its own success.

“Incremental upgrades with new devices aren’t enough to justify users paying more for these features,” he says.

But he also expects Apple users to stick around – for now, at least. “It is extremely unlikely that Apple users will churn for cheaper rival products,” says Pescatore.

5g wait-and-see

Apple has also faced questions over its 5G approach. While Samsung and Huawei have confirmed that they will release 5G smartphones this year, there has been little to nothing coming from Apple on the subject.

This wait-and-see approach isn’t too surprising, given that the first iPhone didn’t have 3G and 4G didn’t arrive until 2012 with the iPhone 5.

Pinto doesn’t believe this is down to a lack of interest or research from Apple in its 5G approach, saying the company is “playing its game” with its strategy.

“Apple will have some research in place, but the problem is more in the infrastructure side and how it can benefit users. It will be difficult to command a premium price for a 5G phone when it’s not yet in place,” she says.

“For Apple, it’s not about being first with 5G; it’s about getting it right.”

Pescatore is also unconcerned with Apple’s 5G strategy, amid the limited consumer uptake for the technology expected this year.

“With this in mind, it is sensible for Apple to wait rather than be among the first to offer a 5G device. 4G still has a lot of legs.”

Bullitt Group has named Westcoast as the lead distributor for its whole portfolio of CAT and Land Rover rugged devices.

The move is part of a “streamlining” of the distribution partners with which the vendor does business, and means that Brightstar, Data Select, Eurostar and New Way will be “phased out” from the start of this year.

Bullitt holds the brand licences for CAT and Land Rover ruggedised devices. In 2017,  it made $200 million (£156.4m) in turnover, with $1.058 million in net profit.

Bullitt Group chief sales officer for EMEA Nathan Vautier said that the distribution strategy has been reassessed throughout the group, not just in the UK.

He added: “It’s always a complicated decision when you’re looking to choose between partners, and there are a number of good distribution partners in the UK.

“But the fundamental reason why we have chosen Westcoast is because of its reach in the UK B2B market, from resellers and the dealer network to the direct sales that it makes.

“We are making sure that we are getting the rugged proposition known and understood and we feel that we can do that with Westcoast.”

Growth

Westcoast head of mobile Darren Seward said that the distributor will maintain the growth that the CAT brand has achieved recently.

He said: “Westcoast are really happy to be working with CAT phones in the UK and are thrilled that another established mobile brand has recognised our market reach.

“CAT phones is the leading vendor in the rugged market and have demonstrated the quality of their products and the pull of the CAT brand with the end user.

“The rugged market continues to grow, and Westcoast will continue to bolster our offering in this area.”

Data Select and Eurostar declined to comment and Mobile News has not received comment from New Way or Brightstar.

Former exhibitors at CEBIT have said they are “not surprised” that Deutsche Messe has decided to cancel the exhibition.

The trade fair operator made the announcement on the CEBIT website on Wednesday (November 28) and said that the decision was taken after a fall in the number of exhibitors at the show.

Speaking to Mobile News, representatives from businesses that were going to exhibit or were involved with the show next year said they had noticed a reduction in the number of exhibitors present at the show this year.

Eurostar purchasing manager Brendan Nicholls said: “CEBIT has been a stalwart in mobile phone trading for the past 15 years but recently we’ve seen a decline in the people there.

“It has gone from five days to four days and there were still empty stands. So it doesn’t come as a massive surprise that CEBIT has been cancelled.”

International Phone Traders (IPT) sales director Ed Elliot-Square said: “IPT has been supporting CEBIT since 2001. Although we are in shock, we are not surprised.

“I think that the decline in overall visitor numbers and the general attitude towards CEBIT over the past four or five years has meant that the writing has been on the wall.”

Phoenix Cellular director and co-founder Paul Walters said he had noticed that exhibitor numbers had declined last year but was still surprised to hear the news that the exhibition had been cancelled.

Walters said enquiries by busineses for used devices at CEBIT had increased.

“I am surprised CEBIT has been cancelled. Last year was quieter than previous years, but we still did a lot of business there. There was a higher percentage of used-phone sellers but still a mix of other companies from the Middle East and Europe.

Nicholls added: “Over the last few years CEBIT has shifted so that everyone there is trading in the secondary market. We were the only ones from the UK selling new handsets to have a stand last year and we had seen a massive decline there.”

Eurostar Global has appointed industry veteran Ewan Davies in the role of business development director as it looks to drive the business forward.

Davies departed Basingstoke-based distributor Exertis to begin his newly-created role last month. Davies spent six years at Exertis, developing and heading up the mobile arm of the business.

During his tenure, Exertis went from turning over £2 million in 2012 to hitting £300 million in 2016. He was responsible for bringing 14 direct relationships to Exertis and was awarded an outstanding achievement award by the distributor in 2014.

Growing the business

Prior to Exertis, Davies was commercial manager for Brightstar from 2008 to 2011 and he held the same role at Vodafone from 2005 to 2008.

Davies’ duties will involve growing the business from a sales point of view and develop processes within the Staffordshire-based hardware distributor.

Commenting on his new role, Davies said: “I can bring a lot of experience to the table and help Eurostar grow more in the UK market, I’m really excited about our ambitious plans, there is lots to do with this 50-strong agile team.

“I joined Exertis six years ago and we’ve grown it from zero to the biggest mobile distributor in the UK. It was time to get a new challenge and do something different.

“Being a director has always been an aspiration of mine and it is the next part of my career. There’s a clearer career path here at Eurostar.”