3 Comments
User's avatar
Sheng Win's avatar

DS took the profits, MX paid the bill, 😅. What do you think happens with enterprise leasing agreements for devices and pcs? The whole model has flipped on its head as it is going to cost a bomb to upgrade, do the enterprise customers have some kind of option to renew or maintain their current devices at the current rates or are forced to eat the higher costs?

Stuart Blackhurst's avatar

Good question. Not sure there's a single answer, in Foxway's Q1 update, I reported on in the May Round Up, management stated that "new device price and supply uncertainty has, as expected, started to influence ordering patterns, with some customers becoming more cautious while others are securing medium-term needs in advance". There was some indication in Everphone's accounts, see report, that customers are renewing onto longer terms. Anything is possible in a contract of course, but I can imagine the lessor won't be the one to lose out...

Sheng Win's avatar

Yeah I think it would be only natural to give the enterprise customer an option to renew but maybe can renegotiate a higher price given the opportunity cost to the supplier. They can fetch a higher price now the the used device prices are higher?