Business Drying Up for Luxury Phone Makers

After years of chasing the ultra-wealthy with exclusive devices that carry designer logos and promise craftsmanship from materials such as sapphire and stainless steel, luxury phone makers are now pulling back, reports Wired.

... In the last few years, luxury phones had turned into an attractive new business, as designer houses rushed to get a foothold in the tech sector. Prada collaborated with LG to launch two LG Prada phones in Europe and Asia. Last September, Samsung launched the M75500 Night Effect phone, which carried the Emporio Armani insignia. A month later, Motorola offered a $2,000 phone, called the Aura, which was fashioned out of stainless steel and sported a 62-carat sapphire crystal lens. And then there’s Vertu, a company that makes true luxury phones, the cheapest of which costs about $6,000.

The recession put a spoke in those plans. And it’s not just the 401Ks of middle-class Americans that have been in peril. In Russia, many newly-minted billionaires saw their fortunes slip away with falling oil prices.

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emily | 12:47 PM | Cell Phone Fashion |
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