Despite the amount of high end phones out there people want a bargain. Price cuts increase competition.

Research conducted by market research company GfK has shown that high end mobile phones only account for a very small share of the Prepay market. In fact low end handsets costing £30 or below have almost doubled their market share in the past 12 months.

The findings seems pretty obvious really, those mobile users that have decided to stay on Prepay are generally low spenders, or those looking to have better control over their budget - so why would they try to save money by sticking to Prepay then fork out hundreds of pounds on a high end handset.

In February this year two thirds of all Prepay mobiles cost under £50, a year ago this total was under half the phones sold. So despite the fact that more mobiles are being sold the actual revenue for selling them has fallen by 14% in a year.

Retailers and networks alike have been competing to offer low cost Prepay mobiles, Orange have had a half price sale on for a few months now, supermarket chains such as ASDA, Tesco and even Argos have all recently reduced their Prepay mobiles.

If you are looking for a new Prepay mobile phone it is worth shopping around as some of the online retailers are offering basic but functional mobiles on Prepay for as low as £5.00. And if you are looking for something a bit more flashy as a mobile have a look in the clearance section - these phones are often as good as new but could be at a significant discount.

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