Nokia Sells Luxury Division Vertu

Monday 12th December 2011 - 16:51

Nokia wants to sell the luxury phone line Vertu as part of restructuring the company. Given the problems faced by the Finnish phone manufacturer and the quite difficult adoption of the Microsoft’s operating system for its phones, Nokia has done a pretty natural step in thinking about selling the luxury division Vertu.

Nokia missed the trend of technology and now is struggling to get rid of all its businesses that suddenly became unprofitable. After closing several factories all over the world, where they were producing cheap phones, Nokia is now trying to get rid of its “Crown Jewel” – Vertu luxury handset division.

The UK-based subsidiary that manufactures phones with a starting price of at least 1,000 pounds, designed for those who can afford throwing money on a weak terminal in terms of performance, but with a case made of rare materials and with inlays in rubies or diamonds.

According to sources close to the talks, it seems that Goldman Sachs mediates this sale. Although no one knows the value of the Vertu Company, its annual revenues are estimated at EUR 200-300 million.

Vertu was considered an exclusive brand, and even if, technologically speaking, the phone wasn’t that brilliant, the handset compensated through the materials used – gold, silver, diamonds, sapphires. Thus, the phone was seen more as a luxury accessory than a functional object, needed every day.

The latest model of the company – Constellation – which has a 3.5-inch AMOLED screen and 8-megapixel camera has a price of £ 10,000 if purchased with options such as crocodile leather and diamonds.  True value of these terminals does not come from the sum of technical specs or materials used but from certain VIP service of specialized consultants that can make recommendations about any field and set up meetings with other exclusive members worldwide.

There are no details about potential buyers, but according to international media, there are only several investment funds interested in purchasing the Nokia subsidiary. Whoever will take over Vertu, will have a lot of work to do – phone design is exceeded, while the gold and the diamonds cannot compensate the performance needed by users.

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