A $10,000 cellphone, waste or worth?
As technology keeps developing, cellphone manufactures keep rolling out new products rapidly and people used to change their cellphone every two years, if not less. Do you think there will be people willing to spend from $10,000 to $100,000 to buy a cellphone that barely has no special feature comparing to regular cellphones?
A British luxury mobile phone maker EQT VI purchased “Vertu” brand from Nokia and turned it to a exclusively luxury designer mobile phone brand. In order to make its ridiculously high price sounds less insane, it emphasizes its superior sensory experience including the touch, the feel and the sound. For example, it uses aerospace grade aluminium to ensure its lightweight performance; it has a ceramic pillow designed to reflect ears’ shape for easy listening; its ringtone is created by British music artists exclusively for Vertu; its battery cover is made either by crocodile or lizard skin; its sapphire crystal screen ensure the highest graph quality and is scratchproof , etc. Also, it has a button that directly links to Vertu concierge, a bespoke, independent lifestyle assistance.
I mean yeah, it is awesome for a cellphone to have such fancy features. But after all, it is still a smartphone with android system, working not as well as neither Iphone nor Samsung. Are people willing to spend this much money on cellphones that they can otherwise even buy luxury cars.
The truth is, so far only 320,000 Vertu have been sold worldwide, 95% are sold in Chinese Market, 4% are sold in India and 1% are sold in everywhere else. The two major markets are very similar, they are both less developed with diversified social class, a massive surge in upper class in particular.
Honestly, I cannot come up with any thoughts explaining about these customers’ purchasing decisions, other than willing to show the others ” I’m rich, and I spend money only because I want to”. But apparently EQT VI has made a large amount of profit only through the small amount of phones sold, and it is pretty sure there will always exits such a market where people don’t care about functional attributes- they are willing to spend as much as they can to make themselves stand out in the crowds.
So for EQT VI, as long as they can come up with products that are somewhat different from the others, they can always ask for a ridiculously high price.