Phones4U Cancels All iPhone 6 and 6 Plus Pre-orders as UK Retailer Faces Closure

[clukas]

I only ever used Phones 4U once as they offered to upgrade me early and buy out my previous contract. I never used them since, and never have felt the need go through a third party retailer as such. Its now much easier to go and compare prices directly.

 

[MagicBoy]

However, rumours in the City have said that EE may want to buy the business, which is ironic as they were the last company not to renew their sales contract with them!

One could suggest that the easiest way for EE to acquire the bits of the P4U business (eg retail property, the good staff) on the cheap and expand their retail offering would be to drive the business into administration.

Caudwell being a canny operator sold the business at the right time to maximise his return, just as he did with Homecall prior to that.

I'm not sure if they've made the right decision bringing the shutters down. Technically they could have traded on for up to another 12 months - the Vodafone contract ran until Feb 2015, EE to September 2015. Will be interesting to see what the administrators do.

 

[clukas]

One could suggest that the easiest way for EE to acquire the bits of the P4U business (eg retail property, the good staff) on the cheap and expand their retail offering would be to drive the business into administration.

Caudwell being a canny operator sold the business at the right time to maximise his return, just as he did with Homecall prior to that.

I'm not sure if they've made the right decision bringing the shutters down. Technically they could have traded on for up to another 12 months - the Vodafone contract ran until Feb 2015, EE to September 2015. Will be interesting to see what the administrators do.

I wouldn't be surprised if they try to sell the business. Im not sure how they are doing financially but maybe Carphone Warehouse will buy them out or EE or another large carrier will simply pick them up for a bargain price.

 

[darcyf]

Computer says nooooo... Phones4U.

Jokes aside, this is pretty sad news all around.

 

[captain cadet]

Very unfortunate. Odd typos in the email too. Ah well, the place must not have been running well at all.

They made over half a billion pounds last year... That's quite a bit of money being a middle man - it works out ruff that each employer made £100,000 for the company a year - can you beat that?

 

[Aniseedvan]

I feel desperately for the staff, given it'll be in the run up to Christmas.

However, the staff in the store I went in just the once, were unprofessional and discourteous. I'm afraid it's the age-old approach of "oh here's a woman, she won't know jack" I got when I used to walk into a PCWorld..

Thankfully the Apple store in the same shopping centre have never treated me with anything but courtesy. If I have to go in a store, then at least this makes it a slightly more bearable experience and ultimately does drive my purchasing decision to an extent, the same way as a car dealership does...

 

[macs4nw]

You REALLY feel "pressured" by the "tactics" of an online store? What's applying the pressure? Too many colors? An overly large shopping cart icon? :roll eyes:

As for a retail setting, lordy. It's not that hard to say "no." If you already know what you want, it's particularly easy, so if someone else sways you that easily, the culprit is in the mirror. 😉

Some people, eh 😀

 

[U8ER-N3RD]

I have had my money refunded and have ordered a iPhone 6 Plus through Carphone Warehouse, for delivery 19th September.

When I spoke with Phones 4 U they were nothing but helpful and apologised for the issues. So we really should be looking at the likes of Vodafone etc for causing this.

I totally agree. I called up and had a lovely person who was nothing but helpful on the phone to me when I said I wished to cancel.

Do you pay outright for the phone? If so has your payment been credited back to you or did you get told 7-10 days?

 

[macs4nw]

A sad commentary on (and reminder of) how 'cut-throat' things are out there.

 

[827538]

You REALLY feel "pressured" by the "tactics" of an online store? What's applying the pressure? Too many colors? An overly large shopping cart icon? :roll eyes:

As for a retail setting, lordy. It's not that hard to say "no." If you already know what you want, it's particularly easy, so if someone else sways you that easily, the culprit is in the mirror. 😉

You've clearly never set foot in one of these stores. I can't say I'm sorry to see them go.

SIM only contract bought online with cash back from Quidco + iPhone bought from Apple is the way to go. Can upgrade whenever suites you best, can pick the perfect contract, lower overall costs.

 

[cjmillsnun]

People who want to buy devices that are unencumbered by carriers' modifications (i.e. unlocked and as designed by the manufacturer).
I would never buy a device from a network's store as I like to keep my service contract and device purchase separate but I guess it's not a big enough market to keep companies like this afloat

CPW iPhones lock to the first SIM that's put in them.

 

[SimonTheSoundMa]

Who goes to one of those chains/online stores if they can avoid it? Packed with the least pleasant people and a combination of lies and pressure tactics to ensure you buy the phone with the highest level of commission.

I never liked their hard sales techniques.

I’ve bought every iPhone since the 4 at an Apple Store, EU law means you get 2 years of Genius Bar warranty coverage in the UK,

If you went in to an Apple Store or any store quoting that you'd be laughed at. I guess you're thinking of Directive 97/7/EC. First, a directive is between the EU and member national governments and has nothing to do with the consumer or retailer, it simply sets out minimum rules governments should implement when they review their legislation, second the guarantee in the directive means the retailer is responsible to repair or replace the product if it goes wrong, but not necessarily for free, third the Sales of Goods Act trumps this directive as the legislation in England and Wales is 6 years.

 

[cjmillsnun]

I wouldn't be surprised if they try to sell the business. Im not sure how they are doing financially but maybe Carphone Warehouse will buy them out or EE or another large carrier will simply pick them up for a bargain price.

I doubt CPW, EE or any of the carriers would want them, maybe with the exception of Three.

CPW has more stores than anyone else, EE/O2/Vodafone have about the same number of stores and locations as P4U, but Three could do with a larger retail presence.

That said CPW do want the staff. They're opening mini stores in Currys/PCWorld... (as the parent is now Dixons/Carphone).

 

[Traverse]

Personally, I like buying directly from Apple.

I won't buy from Verizon because I like to keep my devices and contract as separate as I can. I also don't use best buy, Radio Shack, etc. Not that there is anything wrong with them, but I trust that Apple is here to stay and will stand by the product and it's just one less middle man.

 

[Quu]

Last time I bought a phone from a store like this (Carphone Warehouse) was in 2003.

The reason I stopped shopping in them is the people who help you are all trying to get a sales commission. That makes them very pushy and disingenuous. They will tell you anything to get you to buy the stores accidental insurance policy for example.

It's annoying and in-fact it's why I buy almost everything online now. If I can't just walk in to a store pick it off the shelf pay and leave I'm much more likely to pay for it online. Anything involving a sales person to do activation of a device and so on I won't do.

Another thing that annoys me actually is when you buy a phone from these shops they open the phone in store and activate it on your behalf. So they get to hold the phone before you do. Apple spend a lot of time on the unboxing experience.

 

[69650]

It's sad that people are losing their jobs obviously, but this isn't shocking. Who goes to a store like Phones4u or the Carphone warehouse when all of the networks have their own chains and online stores?

The idea is you go to somewhere like Phones4U so you can compare tariffs and deals from all the networks in one place rather than having to go to each of the network shops and not everyone uses the internet. Personally I never went in to Phones4U as I always found the sales people far too pushy.

 

[Lostanddamned]

If you went in to an Apple Store or any store quoting that you'd be laughed at. I guess you're thinking of Directive 97/7/EC. First, a directive is between the EU and member national governments and has nothing to do with the consumer or retailer, it simply sets out minimum rules governments should implement when they review their legislation, second the guarantee in the directive means the retailer is responsible to repair or replace the product if it goes wrong, but not necessarily for free, third the Sales of Goods Act trumps this directive as the legislation in England and Wales is 6 years.

I used to work in a store. They have policy training to ensure that you are able to make such a claim within 2 years. See here

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You REALLY feel "pressured" by the "tactics" of an online store? What's applying the pressure? Too many colors? An overly large shopping cart icon? :roll eyes:

As for a retail setting, lordy. It's not that hard to say "no." If you already know what you want, it's particularly easy, so if someone else sways you that easily, the culprit is in the mirror. 😉

I was making reference to preferring the Apple Store environment to the carrier stores or retailers, which are designed to funnel you to a certain situation.

The fact is that I don’t want to have to keep saying no, or to give my reasons as to why; I just want to buy the phone I want, for the price I know it is advertised as, on the plan I have researched.

 

[blue22]

no surprise...

I wonder if Carphone Warehouse is next? 😉

 

[Kissaragi]

What a time for EE and Vodaphone to pull out :s

 

[MrCornfed]

.

 

[charlituna]

I’ve bought every iPhone since the 4 at an Apple Store, EU law means you get 2 years of Genius Bar warranty coverage in the UK,

The Sale of Goods Act doesn't give you a 2 year warranty at the Genius Bar. the SGA is about the buyer and retailer, not the manufacturer. And it only covers issues present or presumed to be present at the time of sale. And the latter is only presumed for the first six months. After that it is on the buyer to prove to the retailer that the issue was there and not replaced/repaired.

Bring a phone to Apple over a year out that has had no reported issues of any kind and try to quote SGA at them, even if you bought it at Apple, and you will be instructed to have your lawyer contact theirs.

 

[weckart]

If I remember correctly, Phones 4 U and Carphone Warehouse sold the phones locked and with carrier modifications. They were simply a one stop shop to buy from any network.

Wrong. All phones are sold unlocked and remain so except Apple's.

The Carphone Warehouse still has contracts with all the major networks (excluding Three), and these are still going strong. EE and Vodafone both stated that they want to strengthen their relationship with CPW.

The networks were making the exact same noises to P4U not that long ago before pulling the plug. It is like the Prime Minister saying that one of his minions' position is 'unassailable'.

CPW iPhones lock to the first SIM that's put in them.

Blame Apple, not the vendor. Stick a sim from Three in it. Three will unlock for free.

 

[coffeemadmanUK]

I'm not a fan of Phones4U with their sales tactics when I've been in.

However there are far too many errors with posts...

- Phones4U were making profit; the business was not failing or badly managed
- Mobiles are sold unlocked and free from network add-ons (except iPhone)
- People use these stores, even if you don't personally

It seems to me that there is no reason other than the networks wanting to reduce the competition in the market and means you now have to either go online or wander to each network's stores to compare prices.

Not a good day for shoppers.

Not a good day for the 5,000 odd staff.

Barely a solid reason given by EE or Vodafone other than some corporate speak that doesn't actually answer the question of why.

 

[tinythomas77]

I totally agree. I called up and had a lovely person who was nothing but helpful on the phone to me when I said I wished to cancel.

Do you pay outright for the phone? If so has your payment been credited back to you or did you get told 7-10 days?

I did pay out right. They authorised my payment, but haven't taken it. So it should release the funds back to me over the next few days 🙂

 

[roadbloc]

Gutted for all the employees. And them who were hoping to receive a new phone.