Luxury phone firm to expand in China

Handset and accessories manufacturer Atelier Haute Communication plans to expand sales of its expensive luxury smartphones to China's lower-tier cities, as demand for high-end goods grows rapidly in the world's second-largest economy.

The Paris-based company aims to add up to 20 new outlets this year across the mainland, where its French-made handsets are sold in nearly 100 locations, including company-owned boutiques, licensee shops, brand stores and other outlets, it said yesterday.

It expects to drive more sales with the release this summer of a lower-priced smartphone, bearing Swiss watchmaker TAG Heuer's brand and costing about Euro2,400 (HK$24,157). Its two other licensed brands are Christian Dior and Versace.

'We believe there is an untapped market for high-end luxury mobile phones and accessories that cater to the discerning taste of the most successful in society,' said Atelier chief executive Stephane Bohbot. About 56 per cent of its global sales last year were generated from affluent buyers on the mainland and in Hong Kong, Macau and Taiwan, he said.

In Hong Kong, prices for Dior handsets range from HK$40,000 to a one-of-a-kind HK$800,000 model. The average cost of its TAG Heuer and Versace models is around HK$200,000. The most expensive model from Apple is its 64-gigabyte iPhone 4S, priced at HK$6,688.

Atelier considers British firm Vertu as its chief rival. A division of Nokia, it pioneered the luxury market segment in 1998 and its handset prices start from GBP3,500 (HK$43,800).