Carphone Warehouse upbeat about holiday sales

Europe's biggest mobile phone retailer has supported a bright forecast by leading SIM card manufacturer Gemplus this morning with a prediction that the mobile phone market is starting to turn a corner.

Gemplus has seen falling demand for SIM cards bottom out and said it expects to start seeing improvements in the coming months.

Charles Dunstone, chairman and chief executive of Carphone Warehouse, added to the lightening mood, by painting a positive picture for the near future. He said: "Our continuing success has been driven by a considerable growth in quality recurring revenue. We are well placed to maximise the opportunities this Christmas and are confident of gaining further market share and a strong performance relative to the market."

The company more than doubled its profits for the first six months of its fiscal year and report a 20 per cent increase in revenues, as it shifted its focus from low end new entrants to customer retention.