Saturday, July 7, 2007

The Demand For $5000 Cellphones Is So High, Nokia Can't Make Enough Of Them.

I bet you every cellphone manufacturer dreams of a problem like that - the demand is so high, they can't make enough phones that have a price tag of over $5000 each. Read this Reuters news bit.

The luxury unit of the world's top mobile handset maker Nokia, Vertu, has seen strong demand this year and is struggling to increase production to keep up, a senior official said on Thursday.

Vertu targets wealthy customers by producing very costly mobile phones made from platinum, gold and diamonds.

"At the moment we cannot meet demand. Sales are more than doubling this year. We hope that pace will continue also next year," Chris Harris, Vertu's marketing director, told Reuters on the sidelines of a news conference.

Harris also said Vertu's new mobile phone model would hit the shops next month and was expected to boost sales.

Vertu does not reveal separate financial details, and its numbers are included in those of Nokia's Mobile Phones unit.

While analysts expect Nokia to sell about 330 million phones this year at an average of around 100 euros ($129) apiece, Vertu sells "tens of thousands" of phones at prices topping 4,000 euros, Harris said.

"We are not in the hundreds of thousands yet, but our aspirations are there," he said.

Vertu has been reaping the rewards of a global economy enjoying growth rates well above the average for recent decades but there are signs the expansion may be slowing, particularly in the key U.S. consumer market.