Vertu’s demise shows why luxury smartphones are an awful idea

Vertu, maker of smartphones that cost more than some cars, is now all but dead. The company is shutting down operations, taking 200 jobs with it.

Despite multiple changes of ownership and various attempts to drive up sales Vertu has been in crisis mode for quite some time, taking drastic measures like dropping the prices of some of its phones from around $14,000 to ‘just’ $5,000 dollars.

Vertu’s owner, a controversial Turkish exile, will maintain brand assets and says he hopes to revive Vertu eventually, but the odds are looking slim. If you ask me, it’s amazing the company even lasted this long.

It’s one thing to be insanely overpriced, so long as the product you’re offering is on some level better than the competition. It’s another to be overpriced and worse than products available to the mainstream.

Early Vertu models had specs that were about a generation behind the competition, and while recent generations caught up a bit, at no point did Vertu approach being the first or best on any particular spec.

Credit: Vertu