As with many modern marvels,
phones have become a new status indicator for the wealthy, and manufacturers have noticed, opting for diamonds, rubies, and sapphires instead of high-end hardware and current operating systems for some models. Though these phones are reserved for the wealthiest of people able to drop thousands of dollars on a whim, some new insight as to how these phones are developed and marketed may have you wondering why
cell phone charms aren't enough for these high-end consumers.
Companies such as
Vertu and
Aesir offer phones that average around ten times the price of an unlocked iPhone 4, and for a good reason: they're bejeweled with precious gems. For their customers, a gold-plated phone is more favorable to the most fashionable
cell phone covers currently on the consumer-level market (we would beg to differ, however).
Almost like Maybach is to Mercedes, Vertu is the luxury-edition division of Nokia, who's successes have been quite the opposite of what is seen in the current economic climate. The Finnish phone maker is the number one manufacturer of smartphones worldwide; but only Vertu has seen a 50% growth in employees since 2009 while the parent company announces a let go of some 3500 jobs as part of a cost-cutting plan,
according to Bloomberg.
So who's buying a 'Signature' piece? Surging demand in the Persian Gulf, Russia, and China have prompted increased sales in phones with sapphire crystal-covered screens. Already, 60% of the luxury phone market in Western Europe is dominated by Vertu who's 'Accent', 'Constellation', 'Signature', and 'Limited Edition' phones reflect a touch of class one diamond-encrusted key at a time.
Aesir is a Danish manufacturer looking to sell its
$57,400 limited-edition 18 carat gold phones as a foray into the 'designer phone' market.
'It's a collector's item. People are used to collecting, say, watches, while designer phones is a practically empty niche,' said Aesir founder Thomas Jensen to Reuters.
Besides top shelf pricing, luxury phones have one thing in common at the moment: they're not so smart. Many phones, such as the aforementioned Aesir 'AE+Y' phone, do not come with cameras, or even the latest flavors of Apple, Android, or Mango. The AE+Y phone targets those who have staff that already manage their calendars and chauffeurs to replace GPS. Many also have multiple smartphones for obvious business and personal needs, therefore making these phones collectors items, pieces of modern techno-art, and even as a new type of fashionable jewelry.
Vertu is slowly adopting the move towards a smarter luxury phone, allowing more modern features such as touchscreens and offering 24-7 reservation and chauffeuring services in their more 'modest priced' entries.
'They’ve been quite clever and successful in keeping Vertu separate from the Nokia brand. They obviously want to avoid customers applying the same mass-market associations,” said Professor Omar Merlo, of Imperial College London.
With consumer-level phones being priced as they are, it's no wonder most roll their eyes back every time there's mention of phones of pure gold.
