Vodafone targets surging smartphone market

Mobile phone giant Vodafone unveiled an updated growth strategy today as it bids to capitalise on surging consumer demand for smartphones.

The company has pledged further investment in its European infrastructure to meet increased data demand as customers watch more video content on mobile phones.

It is also planning a new pricing strategy for mobile data which will see the adoption of tiered charging and differentiated service levels.

Vodafone announced its strategy at the same time as results showing it increased half-year operating profits by 3% to £6.1bn (€7.1bn).

It also raised its guidance for full-year profits to £12.2bn (€14.17bn) from £11.8bn (€13.7bn) after higher than expected revenues growth in each of its operating regions.

UK revenues were up 5.2% in the second quarter, leading to growth of 2.9% in the first half, as the increased take-up of smartphones such as Apple’s iPhone and mobile internet bundles more than offset “intense” competition.