If you are into luxury smartphones, then chances are, you might have heard about a company called Vertu. Vertu is known for selling highly expensive phones. In fact, most of them are priced at over $20,000 which is an insane amount of amount of money to be spent on a smartphone. Yes, not all the Vertu smartphones cost upwards of $20,000, but they start selling at $9,000, which is still a lot of money that anyone would like to pay for a phone.
The company has been in existence for quite some time now and it recently got acquired as well. However, now it looks like things aren’t going really well for the luxury phone maker. It has been reported that the company is facing a lot of questions regarding unpaid wages, reduced production and even pension contributions not making it to retirement funds. Well, that’s certainly not a good sign. However, there’s more to it. It has also been reported that the company is in debt some suppliers like Qualcomm, etc. and even with other service providers like waste management, etc.
Apparently, this has a lot to do with the new ownership. As mentioned earlier, the company was recently acquired by Hakan Uzan in March. However, it looks like he has not paid the former owner. In fact, Uzan is now being sued for illegally holding shares of the company without any payment. Now it remains to be seen who things end up for the company in the coming months since it is not really looking at the moment. However, this surely goes to say that not a lot of people are interested in buying a ridiculously expensive smartphone after all.
Vertu’s business model of relying on rich people wanting to buy these expensive devices isn’t working anymore. This has a lot to do with how the market is changing over time. There was a time when smartphones that were coming out in the market was not as good looking as the Vertu phones. However, now that we have devices like the Galaxy S8 and Xiaomi Mi Mix, etc. nobody seems to be interested in buying the Vertu phones. In fact, they are not even that powerful as far as the internals are concerned. With all that being said, we would like to know your thoughts on this. What do you think about Vertu’s current economic crisis? Be sure to let us know by dropping a comment down below and also, stay tuned to PhoneRadar for more info like this.
Source – The Telegraph