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The gold model of the AE+Y

Æsir wants to enter the luxury mobile phone market. But unlike the models of competitors like Vertu, Æsir’s debut phone – called the Æ+Y —  stands starkly apart: It has as no diamond adornments, no 3G connectivity and not even a built-in camera.

Æsir, a Nordic term for the principal gods in Norse mythology, is a small Copenhagen-based design company founded in 2007 by Thomas Moller Jensen, a Danish businessman who previously worked in the shipping and wine industries. The Æ+Y is the company’s first product and will come in two versions: A stainless steel model, which will sell for €7,250 (US$10,600), and an 18-carat gold edition, which will retail at €42,000 (US$61,400).

The model will be launched in Hong Kong and Europe this summer, with other countries to follow, and will be sold unlocked so that buyers have their choice of phone service providers. (Prices will remain the same around the globe, excluding tax.) The gold model is now available on the company’s website on a made-to-order basis.

Both models were designed by Yves Behar, the Swiss-born industrial designer behind the One Laptop Per Child project (the “+Y” in the name stands for “Yves”), and feature a keypad that looks similar to a  gold or silver watch band. The Æ+Y features basic functions like an alarm, speed dialing and calculator, but lacks any gadgets like a music player, video camera or even Internet connection.

So why does this stripped-down phone cost so much? Mr. Moeller explains:

Exclusivity : Although Æsir didn’t set a cap on the number of models it would produce, there’s little chance that buyers will run into someone using the same phone. The company plans to make just 50 copies of the gold edition this year. “We are not limited-edition, but we have limited capacity,” says Mr. Moeller. “Lots of people already have an iPhone, but this is for people who want something more interesting. We just want a fraction of Vertu’s [market share].”

Effort : Part of the reason why production capacity is limited is because it takes up to 20 weeks to create just one model. This includes 17 weeks for the sapphire crystal screen to be made and 40 hours for the front-and-rear ceramics and chassis to be produced. “We went through all the suppliers you can imagine,” says Mr. Moeller. “It took two years to make some of the metal parts because it’s completely different from [anything else].

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