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3.4 Market structures

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Question 7

Extract A

The high street growth of independent mobile phone repair kiosks (IMPRKs)

The UK’s independent mobile phone repair kiosks (IMPRKs) have witnessed explosive growth over the last decade, offering highly price-competitive screen and battery replacements. This expansion, however, has drawn attention from local councils regarding safety standards and informal employment practices.

Estimates suggest there are between 6,000 and 12,000 independent repair outlets operating across the UK, ranging from small high street shops to tiny kiosks in shopping centres. This fragmented nature and lack of a centralized licensing body make regulatory enforcement and tax collection highly complex. Historically, mobile phone repairs were specialized services provided primarily by official brand manufacturers at high-end flagship stores. Today, repair services are ubiquitous on almost every local high street. The rise of online shopping left high streets with many vacant units, driving retail rents down and allowing small operators to secure low-cost retail spaces or kiosk spots with flexible leases.

The startup capital required is exceptionally low—needing only precision screwdrivers, a heat plate for softening adhesive, replacement glass/batteries, and basic diagnostic software. The sector is heavily supplied by self-taught technicians or students seeking flexible hours. For many, it acts as an entry point into the informal economy, with some working long hours without formal contracts.

In dense urban locations, kiosks compete fiercely on price, with basic screen replacements for older models starting as low as £25. The economics are tight: if a technician takes 30 minutes per repair, they can complete at most 16 repairs in an 8-hour shift, generating £400 in revenue. After subtracting the wholesale cost of replacement parts, rent, electricity, and insurance, paying the National Minimum Wage to staff is only viable if the kiosk maintains a continuous queue of customers.

Furthermore, safety concerns are growing. Technicians in smaller, poorly ventilated kiosks are frequently exposed to toxic fumes from industrial adhesives and fine glass dust without adequate local exhaust ventilation or protective eyewear.


Using the information provided in Extract A, explain the market structure that best describes the independent mobile phone repair kiosk (IMPRK) industry in the UK.

[5]

3.4 Market structures Questions

  1. A Level
  2. /Economics
  3. /3.4 Market structures