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Vertu seeks a broader market for luxe smartphones and new audio accessories

Vertu, the pioneering maker of luxury mobile phones, expects the release of its latest Android-based smartphone to entice a new generation of affluent consumers in what could be a banner year for the company.

"The launch of the Constellation, which is our second Android phone, is a clear sign that we want to enlarge our market to include a younger audience," Vertu chief executive Massimiliano Pogliani told the South China Morning Post yesterday.

In an interview ahead of the Constellation's grand launch in Hong Kong today, Pogliani also said Vertu would develop audio devices as part of its luxury product portfolio.

"We have drawn up a new business plan for the next three to five years, as well as a new product roadmap, so everything is defined," he said. "Although we are keeping pace with technology, we need lead time to develop these new products at the level of quality we want to reach. This is a vibrant time for Vertu."

The mid-tier Constellation, with prices starting from HK$52,000, marks the British firm's second major product launch this year, following the release of its top-of-the-line Ti model in February. Prices for the Ti start from HK$79,000.

Both products represent Vertu's shift to Google's popular Android mobile operating system, which replaced the Symbian platform. The devices, however, only support 3G networks.

"Vertu has a clear segmentation strategy with the Constellation, which is priced lower with a different service proposition and a more contemporary design than the Ti," Pogliani said.

The Constellation does not have the same concierge service packaged with the Ti, but other offerings include corporate-class encryption and antivirus protection, as well as access to exclusive events and clubs. Catering to a more internet-savvy audience, the Constellation can be bought through luxury retailer Lane Crawford's e-commerce website.

Made in Hampshire, England, the Constellation sports a 5.1-inch piece of scratch-resistant sapphire crystal that sits on top of a 4.3-inch high-definition screen. It features a polished grade 5 titanium casing, a material that is lighter and stronger than stainless steel.

It is also swathed in high-quality calf leather in five different colours.

Pogliani declined to elaborate on Vertu's planned leap into the audio devices arena, but said the company's smartphones already had superior audio quality than many smartphones in the market. "Offering a new solution for our customers to listen to music in the best way possible is aligned to extending the appeal of our brand and our phones," he said.

A report by Futuresource Consulting estimated the global headphone market reached US$6 billion last year on sales of more than 260 million units, up from US$5 billion and unit sales of 228 million in 2011. Sales are expected to top 330 million units in 2016.

Revenue share is now dominated by premium brands, including Beats Electronics, Skullcandy, Bose and AKG.

Vertu, which has annual sales of about 300 million (HK$3.2 billion), counts China - the mainland, Hong Kong, Taiwan and Macau - as its biggest market worldwide.

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