3 reasons why Nokia can sell Vertu

The Finnish Nokia is going to sell its British “daughter” Vertu , which produces the most expensive serial phones in the world (the price of handmade devices can be hundreds of thousands of dollars at all). This was reported by the newspaper Financial Times with reference to an informed source. Goldman Sachs will advise Nokia during the transaction. While negotiations are at the initial stage, even the price for which the Finns would like to sell their luxury unit is not determined. But FT reported the annual revenue of Vertu - $ 268–4 402 million. The most likely buyer is one of the manufacturers of luxury brands. Slon asked the leading analyst Mobile Research Group Eldar Murtazin formulate 3 reasons why Nokia can really sell Vertu:

No. 1. Unprofitable. Nokia just loses money. The costs of promotion are high, and almost no return. On the contrary, sales of the Lux class phones have fallen significantly over the past year. Vertu lost 30% of sales in 2011.

No. 2. This enterprise has no future. The audience came across what they are doing. But the company did not offer them anything new. In addition, Vertu devices have little in common with the phones of the Nokia brand itself, whose products are famous for reliability, but is still designed for a mass consumer.

No. 3. Nokia itself as a manufacturer of image platforms actually died two years ago. Today, the iPhone ball rules in this segment. No one will buy Vertu smartphone after iPhone. Vertu will die anyway.