When a Phone is Not Just a Phone

Vertu = luxury phones, at least on the outside, for now. 

The phones are handmade, one at a time, by master craftsmen in England for the luxury division of Finnish phone maker, Nokia.  

Made from stainless steel with a sapphire crystal screen making them virtually unscratchable (except by diamonds) and keys that pivot on ruby bearings, the Vertu watches are undeniably eloquent and unique.

Bloomberg BusinessWeek (3-9 October 2011) pegs the average cost at for a Vertu at $6,800 with their Signature line costing more than twice than amount!

Started in 1998, they have sold more than 300,000 phones in the last decade, and have seen “high double-digit sales growth.”

The main problem with the phones according to IDC researcher is that they are “remaining decidedly low-tech”–running on “Symbian, the old Nokia smartphone operating system being phased out in favor of Microsoft’s Windows Phone 7″–another market non-starter!

Currently, they are seen as more jewelry than smartphone, and so “a lot of Vertu owners have another device for everyday use.”

However, another area where the Vertu phone has the special something is in terms of service–concierge service that is.  Free for the first year and then costing about $3,0000 a year thereafter, you get a 24-hour hotline in nine languages for handling everything from restaurant reservations to travel planning and sending exotic gifts, such as “a box of live butterflies”–well not something I would do everyday, but I may just not be such a great gift giver 🙂

Also, many models come with dual-SIM cards so you can have one phone for example for both business and private use with different phone numbers, networks, billing plans, etc.

Certainly this phone makes a big statement in terms of handsome looks and a very special service offering, but to really be luxury inside and out in the mobile computing marketplace, it’s got to do a deal with Apple and/or Android, period.

Vertu customers paying big bucks for a great phone, deserve not only the best looks, but the best smartphone technology.

Another big challenge is that with people upgrading their smartphones every 18-24 months, how do you maintain the Vertu’s value over time or is this a luxury purchase to be made on the order of Moore’s Law?

Oh baby, that’s a lot of Vertu!

>An Always On Technology Society

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We are an always on technology society–anywhere, anytime, anyhow.

Check out the new Microsoft commercial with some examples.

(Note: I am not endorsing Microsoft or their products.)

>You Can Slow Them Down, But You Can’t Stop Them

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What happens when someone does something and you don’t like it—I mean you really don’t like it (and that something is painful—physically, emotionally, or even financially)—you try to get them to stop.

You see it all starts when we are little and growing up and big brother Johnny pulls our hair or takes our toy and we go running to mommy, yelling to make Johnny stop. Mommy comes out standing straight and tall and pointing her sharpened finger at Johnny, and looking Johnny straight in the eyes says stop bothering you’re little sister. Johnny looks down, sulks, and says okay (maybe even expressing a barely audible, and hollow, sorry). But then what happens when mommy leaves the room for a few minutes, Johnny’s at it again.

And that’s what happens when Johnny is doing something wrong…imagine if he believes he is doing the right thing all along, of course, he continues on his merry way doing what he was doing.

Organizations, like people, seek to stop the pain as well and if they can’t compete in the markets, they take it elsewhere.

The Wall Street Journal, 2-3 October 2010, reports “Microsoft Lawsuit Seeks To Slow Google.”

Like Johnny, Google (although technically smaller than Microsoft revenue-wise) is doing something that Microsoft really doesn’t like; Google is walloping Microsoft in smartphones: “Microsoft’s share of the worldwide smartphone market this year is expected to fall to 6.8% from 13% in 2008, while Google is forecast to jump to 16% from less than 1% two years ago, according to IDC.”

Microsoft like the kid, who wants the hair pulling to stop, and they can’t make it stop themselves through a competitive product at this time, is running to “Mommy,” in this case the courts, and seeking relief by suing Motorola, the handset maker for the Android.

As one patent lawyer put it: “My gut feeling is Microsoft is losing the hand-held wars and they’re using their patent portfolio to get some of it back.”

Certainly, Microsoft isn’t alone is using this slowing tactic, for example, recently HP filed to sue Oracle for hiring their ex-CEO Mark Hurd, even though as 24-7 press release notes California tends to favor the free movement of employees and do not enforce non-competition agreements.

While Microsoft believes their new Windows Phone 7 (i.e. the Windows Mobile replacement) is the answer to their smartphone operating system prayers, and will help them to compete against the Google Android (and the Apple iPhone), the market results remain to be seen.

If Microsoft continues with an inferior product, then like a Johnny in the right, Google will continue to go right on beating Microsoft at their own game (unless of course, the courts say otherwise).