Dixons Carphone plunges as users hang up on new mobiles

Consumers are holding on to older mobile models for longer. Picture: John Devlin

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Shares in Dixons Carphone went into freefall after the retailer warned over a Brexit profit hit as soaring costs for new mobile phones means people are holding on to older models for longer.

In an unscheduled trading update, the electricals giant said the pound’s collapse following the country’s decision to quit the European Union has meant an increase in shop prices for mobile devices and bemoaned “challenging conditions”.

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As a result, Dixons Carphone now expects headline pre-tax profit for the full year to be in the range of £360 million to £440m. This is down from analyst forecasts of between £460m and £485m and well below the £501m booked last year.