France Telecom CEO Stephane Richard, speaking with Bloomberg, believes that spending habits and behaviour among European consumers is changing. That is, consumers in the European Union are becoming less satisfied with forking over outrageous amounts for the latest iPhone and expensive wireless carrier bills. And I’m sure it’s not just Europeans that feel that way. Nevertheless:
The shift has been especially severe in Europe, where more customers are keeping the same phone when they switch carriers. Amid a slumping economy and mounting competition, France Telecom has seen prices drop 25 percent over the past three years, squeezing profit margins and its stock price.
Richard goes on to discuss how Apple will have an increasingly difficult time selling the next-generation iPhone model, as consumers have become much more frugal when it comes to spending a large sum, such as $600 or more — or equivalent — on the latest smartphones and gadgets. So, we ask our European readers, is this true? Are you tightening your budgets on the newest electronics?