Post date: Aug 07, 2012 1:40:31 PM
Handsets from the likes of Vertu have long been heavy on style and light on features. But the next generation of buyers expects more from their $6,000 dollar handsets.
CHINA-LUXURY PHONES - The iPhone? A cheap trinket.
The Samsung SIII? The phone of the commoner.
As Samsung battles Apple in a U.S. courtroom over the right to hawk its handsets to the masses, those who'd rather not be seen with the same mobile as the 99% are looking elsewhere.
Like this posh art gallery in London, where Vertu announced a limited-edition charity-run of its Constellation phone this summer.
With a starting price tag of six thousand U.S. dollars, it's about 10 times more expensive than the latest iPhone.
So why do mobiles like these command such a premium?
Well, depending on how much you fork over, your hand-crafted phone comes with gold trimmings, diamonds, even crocodile skin, and a 24-hour concierge.
REUTERS REPORTER, JON GORDON, SAYING:
"But where these phones don't stand out is features. Vertu''s top end handsets all rely on Symbian O/S. That's a 1990s era operating system it inherited from Nokia, before it was sold off to private equity firm EQT in June."
You can forget the inconvenience of buying and updating apps, because there aren't any available.
French firm Atelier, which designs handsets for luxury brands like Tag Heuer, Dior and Versace, is changing that.
Their latest phone, the $3600 hundred dollar Tag Racer, is powered by Google's Android operating system.
CEO OF ATELIER HAUTE COMMUNICATION, STÉPHANE BOHBOT, SAYING:
"Before when we think about luxury phones we think about basic features, very standard phone, very nice but nothing really inside in terms of technology. And now, with this new generation of products, we will attract new customers who are very demanding to have high technology, combining with luxury design, luxury material."
Vertu owner EQT declined to comment on the operating system for its next generation handsets,
Leaked photos though, on a Chinese tech forum, suggest an upgrade is in sight to the Windows 8 mobile platform.
IDC stats on sales show strong growth for smartphone makers in the second quarter, including former Vertu parent Nokia.
For the customers of these uber-phones, the decision to buy is still less like a tech purchase, and more like buying jewelry or an expensive watch.
China has been in the driving seat of global luxury spending growth, and is the top buyer of Tag's line of phones.
But Bain & Co warns China growth will advance just 20% this year, down from 30% in 2011. That's in part because of new government restrictions on corporate sponsored gift-giving of luxury items.
LUXURY RETAIL ANALYST, CORE PACIFIC, YAMAICHI INTERNATIONAL, EUGENE MAK, SAYING:
"I expect corporate gift giving will continue once things clear up and calm down, because it's still part of the Chinese culture "
With Europe mired in austerity and the U.S. recovery still uncertain, luxury phone makers are counting on Chinese demand to stay strong.
That means adapting with the times, and producing phones that aren't just physical works of art,
But with software good enough to merit the price tag.
REUTERS REPORTER, JON GORDON, SAYING:
"It even smells expensive!"
Jon Gordon in Hong Kong.