Mobile financing is critical to the future success of the wireless industry
While big-name mobile phone carriers and producers like AT&T, Verizon, iPhone, and Samsung may seem to define the mobile industry, the mobile market is host to a variety of enterprises, including refurbishers, insurers, MVNOs, and wholesalers. In a space as large as the wireless industry, there's more than enough room for everyone to experience success. But to help smaller businesses compete with the heavy hitters of the wireless industry, loans for mobile stores are essential.
Of the world's 7 billion people, 6 billion have access to mobile phones. Whether a simple cell phone or a high-tech smartphone, mobile devices have changed the way humans communicate and interact with one another. As sellers of a product that has become almost indispensable in today's society, with a market that comprises over 80% of the global population, wireless industry retailers have access to a hugely profitable market.
The modern mobile industry faces significant cash flow problems. Increasing wholesale prices for mobile phones, coupled with decreasing levels of retail markup have yielded lower profits for mobile retailers. Smartphone sales have exacerbated this problem, with iPhones retailing for $650. While wireless carriers profit from this pricing arrangement, it leaves mobile stores without the funds necessary to restock and expand their stores.
If mobile retailers want to stay in business without drastically raising their prices, the answer is mobile financing. Through programs specifically tailored to the needs of mobile dealers, lenders can help small businesses within the wireless industry to secure access to capital without harming consumers.