Luxury Smartphone Producer Vertu Gets Dissolved

Vertu will no longer produce luxurious phones for the rich

The world of expensive smartphones was left in shock after the luxury smartphone manufacturer Vertu announced it would disappear from the market. The company revealed it was struggling to convince rich people to buy its devices, which could be easily explained by the overwhelming prices it offered.

Vertu sold gold-plated smartphones ornamented with jewels

Vertu started as a company with a clearly devised area of target customers, as the smartphones weren’t affordable for anyone. It hoped that offering luxury phones plated with red gold of 18 carats and jewels would speak to the upper layer of society. However, spending $46,600 on such a device seemed too much even for them.

Soon after Vertu announced the company would be dissolved, it revealed what was the main reason which led to this decision. It seemed that it had a huge deficit of £128 million. This represents roughly the price of 3,555 smartphones from the Cloud de Paris Red Gold collection.

They didn’t give rich people what they wanted

For the past years, the company went through ups and downs, but this didn’t automatically mean the end should come. In 2015, Vertu was bought by a Chinese firm, which then sold it to Hakan Uzan, a Turkish exile, in 2017. However, its exquisite offer of gold-plated phones wasn’t able to save it, so Uzan decided it was best to give it up.

But why wasn’t Vertu actually what rich people wanted? Although they have plenty of expensive technology at hand, this smartphone seemed to offer something different. Also, the excessively rich seem eager to spend money on anything covered in gold.

This is why it seems hard to understand why Vertu wasn’t successful. Do the rich actually not want gold-plated phones with advanced technology? Or were these smartphones overpriced pieces of tech with a poor performance? What is clear is the fact that luxury phones are not the future, or maybe they came ahead of their time.