The phone, the Aura, has sapphire displays and 100 ball bearings in the hinge, Crain's Chicago Business reported Thursday. The switch-blade shaped phone operates on a GSM digital system, similar to AT&T and T-Mobile phones, Crain's said.

But, one analyst questioned the timing of the release of an expensive phone with the economy in a downturn.

"Given everything going on in the world, it's curious timing, said Jane Zweig, chief executive officer of Shosteck Group, a Maryland consulting firm said.

The Aura is not as pricey as the Vertu, a $5,000 Nokia Oyj phone that sells to affluent consumers mostly in the Middle East and Asia, Crain's said.