Finnish handset maker Nokia is reportedly planning to sell of its luxury handset division Vertu, which manufactures handsets encrusted with precious stones for the affluent market segment. According to reports, the division has been valued in the range of US$ 260 million and US$ 400 million approximately.
While many would believe that there would be very few buyers for a US$ 10,000 handset, the division has reported very good profit margins and has as much as 60 percent of the European market in its grip. A major attraction for people buying these phones is the concierge service which is available 24/7. The service has a special call button on the phone which gives users access to a team of dedicated assistants which take care of various requests such as taxi and restaurant bookings along with finding whatever is requested for.
As per sources, analysts speculate that apart from the private equity firms, luxury brands may also be interested in acquiring Vertu based on its target market.