Vertu Mobile Phones: Luxury Redefined
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
"We are not in the hundreds of thousands [per year] yet, but our aspirations are there."1
- Chris Harris, marketing director, Vertu, in August 2006.
"We understand communications technology. We believe now that we understand the luxury industry. It will take something for competition to match that." 2
- Nigel Litchfield, president, Vertu, in 2002.
Vertu had invested considerable money as well as time in conceptualizing and creating its range of luxury phones. These extremely expensive phones were primarily targeted at young and successful businessmen. Vertu realized early that mobile phones, far from being just a communication device, would also come to reflect the personality of their owners. While the Vertu phones evoked a good response, some analysts doubted whether the interest would be sustained.
1] Anton Shilov, "Vertu boosts production: Demand
exceeds expectations," www.xbitlabs.com, August 18, 2006.
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