The markets were tough on Vodafone yesterday with its shares falling by almost 14%. Whilst group revenue is up by 19.1%, this is mostly by acquisition, exchange rate fluctuations and increasing data sales rather than organic growth.
This left Vodafone with the tricky task of reducing city expectations for the near term.
Vodafone are predicting tougher times ahead as the credit crunch and rising bills hits consumer spending, especially in its more traditional markets.
Market saturation is yet another problem as all the networks can do now is to churn each others connections, neither gaining nor losing customers, but at a very high cost just to remain static.
As the EU squeezes further revenue out of Vodafone’s European business, the only way for them to grow is in under developed nations.
Expect Vodafone to buy more marginal African, Asian and South American network operators over the next couple of years.
iPhone feature wish for the day –
Tough luck if you want to find that vital email with the iPhone. Other mobile email systems enable searches of the thousands of emails in your Exchange inbox (if your disorganised) or in your folders. Why can’t the iPhone?