London: Nokia is considering selling its luxury mobile phone unit Vertu -- the maker of the world's most expensive handsets -- as it plans to compete more aggressively with other players in the smartphone market, a media report said on Thursday.
Vertu was created by Finland-based mobile phone giant Nokia in 1998 to tap into a niche market for mobile devices with price tags rivalling ultra-expensive luxury watches.
The prices of the handmade phones sold by this UK subsidiary could exceed USD 300,000 and these handsets typically include precious metal components.
"Nokia is to sell its luxury subsidiary maker of the world's most expensive mobile phones as the once dominant Finnish handset manufacturer overhauls its business in an effort to compete with Apple and other smartphone makers," a newspaper reported.
The report cited an unnamed source as saying that Nokia has appointed Goldman Sachs to oversee the sale, but talks are still at an early stage.
According to the British daily, Nokia and Goldman Sachs declined to comment.
Vertu has yet to be given a value, although annual revenue is estimated to be between USD 268 million and USD 402 million.
The report said that some private equity groups are interested in the deal. In addition, the company is also likely to attract attention from luxury goods brands, given its emerging-market customer base and the potential for cross-selling.
There are Vertu phone outlets, including some dedicated shops, in more than 60 countries, but the phones have the strongest following in regions like Russia, Asia and the Middle East.
PTI
