Nokia prepares to lose its bling tone

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.

Vertu was created by Nokia in 1998 to tap into a niche market for mobile devices with price tags that rival luxury watches. The handmade phones sold by the UK subsidiary can cost more than £200,000 ($314,000), and typically include precious metal components. Nokia has appointed Goldman Sachs to oversee the sale, which one person familiar with the process said was still at an early stage. Vertu has yet to be given a value, although annual revenue is estimated to be between €200m and €300m ($268m and $402m). One person with knowledge of the business said that there had been interest from private equity groups. The company is also likely to attract attention from luxury goods brands, given its emerging market customer base and the potential for cross-selling