Dixons Carphone has reported a fall in mobile phone sales as fewer people signed up for two-year contracts.
The electronics retailer posted its Christmas trading statement which showed that mobile phone sales were down 7% for the 10 weeks to 5 January. The companies chief executive, Alex Baldock, said that the figures were "as expected".
According to the figures, it's the only area the company saw a significant drop, with its overall revenue up 1%, but the decline in mobile phones sales is now a reality for retailers and suppliers.
It all seemed to begin with Apple reporting lower than expected iPhone sales, originally attributed to slow sales in China. The Cupertino firm cut back on production of its flagship device by 10%, but the news had already begun to affect its supply chain.
UK-based semiconductor firm Dialog, which supplies chips for iPhones, reported lower than expected fourth-quarter sales at just $431 million.
Apple's smartphone rival Samsung also reported low end of year sales for its Galaxy range. The South Korea tech giant also provides parts for iPhones, such as batteries and LCD screens, highlighting the knock-on impact of dwindling iPhone sales.
For Dixons Carphones it's just one area of slow business as the company posted growth in sales of large TVs and smart tech, such as voice-controlled speakers helping to take the overall like-for-like revenue up 1%.
"Peak trading was solid and in line with expectations, producing record sales against a tough backdrop," he said. "In UK mobile, performance was as expected and overall, our peak trading was disciplined and well-executed, with stable gross margins.
"In UK electricals we grew sales, despite a challenging backdrop and a declining market."
