Flip through pages of Billionaire Magazine; you’ll find Maserati’s, Azimuts Yachts, Gucci wardrobes, and what’s this? Vertu? Yes, Vertu. The New big thing in the luxury product market, a smartphone with market prices at $9600, on average.

The Vertu Ti smartphone is a phone covered in sapphire, titanium, gold and diamonds. Sounds pretty, doesn’t it? But here’s the hook; Why, in an economy which is slowly recovering from a recession would you ever shell out $6,000 on what is essentially a Samsung s4 on the inside? The answer is the same as one you would get if you ask anyone who has bought a Rolls Royce in the past 5 years.

Vertu has come to be known as the Rolls Royce of cellphones, and while most phone companies were struggling to make a decent profit we see that Vertu was growing. This is partly because Vertu had somewhat of a first mover advantage. Not many companies had thought of delving into the world of luxury cellphones. But for a man who owns a luxury yatch and a Malibu beach house what would be better than to have his phone match his opulent life style. Thus I believe that Vertu has been able to successfully capture a niche market but creating a product which is under provided and has a large profit margin.