The weird world of aspirational goods
Vertu makes crazy expensive phones . Vertu, started by Nokia Oyj (NOK1V) ’s then-chief designer Frank Nuovo in 1998, has sold more than 300,000 phones in the last decade and seen “high double-digit sales growth” since the start of 2010, President Perry Oosting said. [...] success is largely due to surging demand in the Persian Gulf , Russia , China and other status-conscious emerging markets, Bloomberg Businessweek reports in its Oct. 3 issue. The phones sell for an average of more than 5,000 euros ($6,800), but top-end models, such as those in Vertu’s Signature line, cost as much as 12,500 euros. Seriously, 12,500 euros? For a phone ? Ah, welcome to the world of aspirational economics , where people want things to project an image of wealth, and in effect, keep up with the Joneses. Think of it like this - you've moved, and are having a party where you invite your neighbors. Not only do you clean up the place, you pr...