BrightPoint increases its share despite profit dive

Written by: Michael Garwood
BrightPoint increases its share despite profit dive

Distributor says it increased its global market share in the first quarter of the year, despite a fall 71 per cent fall in profits in the three month period

BrightPoint president EMEA Anurag Gupta says the distributor increased its global market share in Q1, despite a 71 per cent dip in profits.

The firm announced its Q1 results at the end of last month, and they showed its net income had dropped by 71 per cent to £1.63 million ($2.64 million), down from £5.7 million ($9.2 million) year on year.

The decrease ends three consecutive quarters of year-over-year profit increases.

The drop came despite a 23 per cent year-on-year increase in revenues to $1.37 billion during the quarter.

BrightPoint blamed certain competitive and economic pressures affecting its customers and vendor partners for the impact on profitability – but it said it expects the situation to improve.

The number of devices handled by BrightPoint quarter over quarter fell by around five per cent – something Gupta blamed on the number of key device launches and also on Christmas, the busiest period of the year.

But Gupta also said it was important to note that the number of handsets BrightPoint handled year on year increased by seven per cent to 29 million – this is despite an industry decline of between 15-20 per cent, meaning it actually gained share.

Gupta said: “When you cut through the noise, we handled over 29 million wireless devices, which was an increase of seven per cent year on year and a five per cent decline quarter over quarter. So we have outpaced the industry growth and actually gained share in the industry.

“There are economic pressures, competitive pressures which all translate into profit pressures, so gross margin was under pressure.

“Our revenue of $1.37 billion beat expectations. And if you look at Q1, there were not many device launches or announcements from our partners. So we were working off the old portfolio.

“Fundamentally, we continue to be positioned very well in the industry. We are announcing many wins and our market share continues to grow.”

Leave a Reply

To advertise on this site, call 0203 122 0872

Recent Comments

Janice - have you tried Three's Intouch app? If you can connect to Wifi at work, you'll be able to make calls and texts using that....
I've just spoken to a Customer Service advisor at Three as I have been having problems since last week Wednesday afternoon. This issue is definitely still ongoing for not only Three customers but...
I have been a member for some time and are now leaving because they have taken £7.50 Goody Bag cost out of my Bank but has not been included on my Balance. So I have been able to use my Phone si...
EE are not the first operator to do this. Three already have an app that allows you to make calls and send/receive texts over Wi-fi when there is no mobile signal available....
if 3 buys o2 I will jump ship at end of contract...
That's your opinion, but it certainly wasn't the best way of phrasing it. That wasn't the only reason the EE advisor scored so poorly, which is made clear in the full review in issue 582 of Mobil...
your mystery caller clearly doesn't have a clue what he is talking about. that is not insensitive at all. quite the opposite....
I think you've entirely missed the point there, Marc. It's not about telling someone to go out to the shop (although that often loses points any way as its rare someone calls up a telesales line ...
I have to say, if you are indeed a blind person you should know it is a lot easier to actually go into a shop and feel the phone for yourself. your first comment about EE slammed them when in fac...
How can i place my contacts in order by first names please. Thank you Mrs Doreen Haggar ....

Social Media Feed