Nokia Oyj, the largest mobile-phone maker, will begin selling luxury handsets encased in precious metals, leather and crystal through a new unit created to cater to an elite group of customers.
The phones are available in five models -- from the top-end platinum, through 18 carat gold, white gold and two stainless steel models -- at prices ranging from 6,000 to 24,000 euros (US$21,196).
The new company, called Vertu Ltd, was conceived five years ago by Nokia's creative director and designer Frank Nuovo. His goal was to ``blend time-honored traditions of craftsmanship and luxury to modern day telecommunications equipment,'' said Danielle Keighery, a spokeswoman for Vertu.
PHOTO: REUTERS
Their introduction comes after a year in which mobile phone sales are expected to have declined for the first time. Nokia estimated last month that industry handset sales fell about 6 percent to 380 million last year. It predicts an increase of as much as 16 percent this year to 440 million -- less than a third of the average growth rate in the years 1998 through 2000.
Luxury phones are aimed at people who are less touched by economic turmoil, Keighery said. "We don't see our business running on the ups and downs in the financial market."
Assembled by hand, the luxury phones feature more than 400 mechanical parts, including 18 jeweled bearings inside a case of precious metal. Their development has led to more than 20 new patents, Nokia said. The sapphire crystal face on the phone is made by the same Swiss company that makes faces for Rolex watches. A thin leather strip on the side of the phones is Connolly leather, the same hide found on seats of Rolls-Royce Plc automobiles.
Upgrades The phones are reinforced with titanium, which is four times as rigid as steel but half the weight, and have ceramic backs.
Ruby bearings, typically used for watches and precise measuring instruments, are fitted under the keys to extend life expectancy to 5 million presses, compared with the average 1 million.
Unlike regular mobile phones the Vertu phones won't become outdated, the company said. The insides are separate from the outside casing, allowing them to be upgraded. The initial products, for example, won't be equipped for General Packet Radio Service technology, but as that system is developed the phones can be brought up to speed, Keighery said.
Initially, Vertu will sell the phones by invitation only through five "private client suites" in London, New York, Los Angeles, Singapore and Hong Kong. In May, Vertu will open a boutique in Paris and then follow in other cities.
Peter Ashall, who was previously vice president of concept and design at Nokia and also worked at Motorola Corp, becomes president of Vertu, overseeing 200 employees from a mix of industries including craftsmen, precision engineers and specialists from the jewelry industry.
Motorola Inc last year introduced removable faceplates encrusted with gold and diamonds as an option on its V66 handsets, which sell for between US$300 and US$3,000.
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