The Great Smartphone Swindle: Chinese Consumers Accuse Vertu of Selling “Gilded Duds” at a Tenfold Markup.

A disgruntled VERTU mobile phone user complains: "I am lost for words. I spent over 70 million VND on a phone that others bought for a tenth of the priceā€.

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Some Vertu users in China have noticed that their phones bear a striking resemblance in design and specifications to certain models manufactured domestically within the country.

This has sparked suspicions that Vertu may be “rebadging” these devices and selling them at inflated prices. In response to these queries, Vertu staff replied that all components of their phones are imported and assembled domestically, dismissing the users’ speculation as mere rumors.

Concession of Inferiority to Regular Phones

In January this year, Mr. Wang spent 26,800 RMB (approximately 940 million VND) on a METAVERTU 2. According to the specifications provided by the brand, the phone is equipped with a 50-megapixel main camera. However, Mr. Wang found the pictures taken to be extremely blurry. After contacting Vertu staff, the phone was sent back to their headquarters for inspection. The results indicated that the camera function of this newly purchased device was non-functional.

A Vertu employee conceded that the photo quality produced by the METAVERTU 2 couldn’t compete with that of the Xiaomi 14, which boasts the same camera resolution at a quarter of the price. “Vertu’s hardware and software are not the best,” they admitted, “as Vertu focuses on performance to cater to its upscale clientele.”

In the product description for the METAVERTU 2, Vertu employs complex technological terms such as AI+WEB3.0, dual-model AI mobile phone, 1 machine and 3 systems (WEB2.0 system, WEB3.0 system, and ghost system), as well as royal-gene ceramics, anti-radiation technology, aerospace-grade carbon fiber, Italian imported calfskin, and rare crocodile skin upon request…

However, the question remains: why is a premium, technologically advanced phone unable to meet users’ basic photography needs?

Suspicions of Rebadging Domestic Phones and Selling at 10x the Price

The most expensive Vertu phone currently on offer is the SIGNATURE V Cobra, retailing for over 10 billion VND. This phone is a collaboration between Vertu and the French royal jeweler, Boucheron. The snake body adorned on the phone is encrusted with 439 rubies, its eyes are two emeralds, its head is set with 2.02 carats of diamonds, and its body is studded with an additional 1.02 carats.

Despite the exorbitant price tag, numerous customers have voiced concerns that several Vertu models may be OEM devices or rebadged phones from other manufacturers.

In May this year, Vertu launched its first foldable phone, the VERTU IRONFLIP, priced between 104 million and 380 million VND in China. However, netizens noticed striking similarities between this premium device and the Nubia Flip.

For instance, the inner screen of the VERTU IRONFLIP is a 6.9-inch display with a resolution of 2790Ɨ1188 and a 120Hz refresh rate, while the outer screen is a 1.43-inch OLED panel with a resolution of 466Ɨ466. It features a 50-pixel + 2-pixel dual-camera setup and a 16-tpixel front camera, along with a 4310mAh battery. These specifications are identical to those of the Nubia Flip, and even the placement of openings and buttons on the sides of the devices is remarkably similar.

The key difference lies in the processor: the VERTU IRONFLIP uses a Snapdragon 8 Gen 2, while the Nubia Flip is powered by a Snapdragon 7 Gen 1. This has led to speculation that the VERTU IRONFLIP may be a rebadged Nubia Flip. The Nubia Flip, when first released, had a starting price of just 10.5 million VND, implying that Vertu has marked up the price more than tenfold.

The resemblance of the flagship iVERTU 5G is even more apparent. Regardless of specifications, appearance, or even the arrangement of camera lenses, it is identical to the Nubia Red Magic 6R and the ZTE Axon 30 Pro. The Nubia Red Magic 6R, when launched, had a starting price of 9.4 million VND, while the iVERTU’s launch price ranged from 69 to 139 million VNDā€”again, a nearly tenfold increase.

A disgruntled VERTU phone user expressed their frustration: “I’m speechless. I spent over 70 million VND on a phone that others bought for a tenth of the price.”

In response to rumors that many VERTU phones are manufactured by ZTE China, a Vertu employee denied these claims, reiterating that all components are imported and assembled domestically, with their headquarters based in Chengdu.

Overinflated Marketing

In their promotional videos, Vertu portrays their phones as capable of summoning a helicopter with a single click, rescuing users stranded on a deserted island. This creates an illusion of exclusive services for their clientele. However, in reality, utilizing these services incurs additional fees. The dedicated concierge is merely an intermediary service provider.

Furthermore, several customers have voiced concerns about the reliability of Vertu’s concierge service. One user shared their disappointment: “The funny thing is that the concierge likes to play ball and rarely solves problems. They often don’t answer the phone for two to three days.”

According to Vertu staff, purchasing Vertu products valued between 55 million and 210 million VND qualifies customers for a Vertu Gold Membership card. This card, boasting various complimentary member benefits, expires after one year, with a renewal fee of 70 million VND annually.

In summary, the dedicated concierge service that Vertu promotes is not a “free lunch,” as many services require separate payments, and membership renewal is costly.

This raises the question: how long can Vertu sustain its business with these sales tactics?

Cam Ly