DBTEL says its new range of luxury phones, which retail at prices in excess of $10,000, are proving a success.

The Taiwanese firm's chairman Michael Mou said that his company intended to market phones as a luxury item, complete with gold, silver and platinum adornments traditionally found only in jewellery.

'We view the mobile phone as very personal stuff and it's a fashion statement for many, like watches and clothes,' Mr Mou told Reuters.

However, Kevin Lin, fund manager at Shinkong Investment Trust, said the new trend, which has seen Nokia launch its own 'Vertu' range of platinum-encased phones, is not about sales.

'Sales of these expensive mobile phones will be limited,' he explained. 'Basically, companies are not going to make lots of money from them and what they want is to promote their names.'