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It remains only iPhone: why is Vertu’s death was natural

The production of luxury smartphones Vertu will be eliminated. Company closes factory in the UK and dismisses 200 employees is, in particular, highly qualified specialists, who worked at the plant city Church Crookham – grown crystals of sapphire for displays of luxury phones, inlaid them with precious metals and stones, and crocodile skin.

Vertu was established in 1998. All she managed to sell about 500,000 units. The company experienced a peak in the early noughties, when the premium phones are not much inferior to the budget counterparts in terms of basic features. Then came the iPhone and started the slow murder of Vertu. For some time the British fought back, but gave up and began to produce smartphones based on Symbian and Android.

In 2012 Nokia, whose position in the global phone market was shaken, Vertu has sold more than 200 million Euro private Swedish group EQT. That, in turn, in 2015, has sold the company to Chinese investors, and they in 2017 – Turkish businessman Murat Hakan Usano.

Custom Vertu phones, the average cost is approximately $13 000. The latest attempt to revive their sales had a price reduction to $5000-9000.

Vertu phones are incredibly recognizable in terms of design, pleasant to hold in hands. There is a very substantial weight. The Vertu engineers thought not only about money but also about the user. As an example, such as sapphire crystal, which appeared in one of the smartphones in 2013. It was not scratched and fought. Suffice it to say that Apple’s dream of sapphire for several years, but consistently refuses it — of course, because of the price.

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Another feature Vertu’s personal assistant. The company has implemented the idea of a personal assistant before Apple and Google. The “Concierge” is not a voice assistant, but a real person who resolves issues. Click on the button, asking to buy plane tickets or book the hotel, and the employee executes everything. Another most famous thing about Vertu — free connection to pay wifi.

Now the status of the owner of the smartphone emphasize first and foremost the characteristics of the device, its functionality, and not the weight of the adorning jewels. In recent years, luxury vehicles in terms of features and innovation technologies does not stand out. This may explain the lack of interest of even the very wealthy users to Vertu.

Every year in Russia sold a few thousand luxury phones. For Vertu Russia, along with China and the Arab countries was one of the key markets — accounted for a third of sales in money terms.

With the departure of the era Vertu phones-accessories finally retired. In 2017, the smartphone has become a common household pribil. It makes no sense to decorate with rubies or calfskin because the functionality and capabilities is much more important than design.

The most promising option for luxury brands — get the iPhone and make customization of the case. For example, to place the Golden emblem of Russia or the portrait of a prominent politician. Despite the small circulation, the creation of such a gadget still pays off due to the cheating. Simple, but effective.

The death of Vertu, in turn, is another step to absolute, hopeless anonymity, which captures the industry of mobile devices. The British company is unlikely to revive, what would it say its current owner. To create an elite phones from the ground up is frankly stupid from a business point of view.

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However, we must not forget about the secondary market — there is the legendary (including button) Vertu will long run. And to pay for them in a few years will be even more than were paid during the life of the company.

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