Nokia Gets Junk Rating from S&P; May Sell Vertu to Save Ship

April 30, 2012, By Sanjeev Ramachandran

Looks like Finnish smartphone maker Nokia has had enough of selling luxury smartphones under its cozy brand name Vertu, which is famous for its hot cake phones with price tags above $20,000.

The phone maker is said to be in talks with a private equity group to sell Vertu for a speculated price of around 200 million Euros or $265 million.

Vertu is presently based in UK and famous for rolling out its exceptional smartphones which are cozy both in their outfits and price. Vertu is still active with new phones, the last being the special phone for the year of the Dragon.

The rig brought along luxurious outfitting like precious stones and expensive metal coverings and to make it the special device to welcome the New Year, the battery cover featured a hand-engraved four claw dragon.

However, in a desperate move to save the sinking ship, Nokia is trying to part with the cozy phone making subsidiary as their stocks are still plummeting in the market.

Their new tie up with Microsoft and picking Windows Phone as its primary platform is yet to help Nokia in their market performance.  Though Lumia devices got a warm welcome, global sales are yet to take off.

Meanwhile, Symbian continues to shed market share and a lower estimate on handset sales has again pushed the ratings of the company down.

Fitch Ratings and Standard & Poor, two major rating firms, have cut the ratings of Nokia to ‘junk’ or speculative, which will further affect the market potential of the company.

We will have to wait and see if the Vertu deal will help the company improve its position.

© 2008-2012 - All rights reserved | Privacy Policy