Should Cell Phone Makers Start Cutting Retail Exposure?

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Brian Polino submits:With the advent of smart phones, cell phone companies have transformed their marketing strategies by switching from retailers to direct sales by use of brick-and-mortar stores and mall kiosks. By operating their own stores, cell phone companies are able to avoid competition by marketing only their products and offering customer service. This strategy of brick-and-mortar selling has proven successful as Google (NYSE: GOOG) failed to market its smart phone, the Nexus One, online. This only solidified the importance and revenue generating ability of traditional retail outlets. It therefore appears that consumers still prefer the hands-on shopping experience with smart phones through brick-and-mortar outlets rather than online “off-hands” shopping. The following data from the Wall Street Journal illuminates the current expanse of cell phone stores:

Cell phone Carrier Retail Stores


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