Stephane Richard, CEO of French Telecom, said in an interview with Bloomberg that customer behavior is changing and price-conscious consumers are driving demand for lower priced smartphones, threatening sales of comparatively expensive phones like the iPhone and Samsung's Galaxy S line. The shift has been especially severe in Europe, where more customers are keeping the same phone when they switch carriers. Amid a slumping economy and mounting competition, France Telecom has seen prices drop 25 percent over the past three years, squeezing profit margins and its stock price. Its cheapest plan now provides unlimited calls and texting and 3 gigabytes of data for about 20 euros ($26) a month
