Cellcom launches online smartphone store

Mobile carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), and Pelephone Communications Ltd. have been trying for a long time to deal with smartphone sales at private stores and retailers. A few days ago, Cellcom began operating its online store, called, “The Mobile Store of Israel”. It offers a range of smartphones, tablets, and peripherals. What makes the store special is that it does not only appeal to Cellcom customers, but also to customers of the other mobile carriers.

To cause consumers to prefer its store, Cellcom offers free delivery to the home, payment in 12 installments at no interest, and an original manufacturer’s warranty, including points-of-sale nationwide. To induce a buyer who is a customer of another carrier to switch to Cellcom, it includes with each sale a SIM card for the device (at no extra cost) to which the customer can later attach another line or mobile package.

Devices in the Cellcom online store’s catalogue include an Apple 16-giga iPhone 5 for NIS 3,7000, a Samsung Galaxy 4s for NIS 3,250, an LG Optimus G for NIS 2,500, a Sony Xperia Z for NIS 3,000, a Sony Xperia Z tablet for NIS 3,000, and a 16-giga mini iPad for NIS 2,300.

This is not the first attempt by a mobile carrier to sell smartphones to the general public, and not only to its subscribers. A few months, Partner launched sales campaigns for handsets to customers of all the carriers. Partner highlighted the advantages of buying a device from it rather than from a retailer. For example, it is possible to get a device repaired at many points of sale across the country, replace a broken device within two business days while an alternative device (usually a simple phone) is provided, and to test the suitability of smartphone models to Partner’s network and the Hebrew language.

Published by Globes [online], Israel business news – www.globes-online.com – on August 20, 2013