Obama says won't guarantee Ahmadinejad a meeting

Democrat Barack Obama underscored his willingness to talk to leaders of countries like Iran that are considered U.S. adversaries but said on Monday that does not necessarily mean an audience with Iranian President Mahmoud Ahmadinejad.

Obama, the Democratic Party front-runner vying to face Republican Sen. John McCain in the November race for the White House, has said he was willing to meet with leaders of countries such as Iran, Syria, Cuba and Venezuela without preconditions.

McCain has criticized that view, saying that sitting down with someone like Ahmadinejad would give the Iranian president a spotlight and send the wrong signal to U.S. allies such as Israel.

Iran does not recognize Israel's existence and Ahmadinejad has called the country a "stinking corpse."

Obama, an Illinois senator, said Iranian presidential elections in 2009 would be a factor in the timing of any meetings, as would considerations of who wields the power.

"There's no reason why we would necessarily meet with Ahmadinejad before we know that he was actually in power. He's not the most powerful person in Iran," Obama told reporters while campaigning in New Mexico.

Under Iran's system of clerical rule, the Islamic Republic's religious establishment has final say in all state matters.

The McCain campaign accused Obama of backtracking.

"Over the past year, Sen. Obama has repeatedly confirmed that he'd meet unconditionally with Ahmadinejad and the leaders of Syria, Cuba and Venezuela," said McCain spokesman Brian Rogers.

Republicans have accused Obama of inconsistency on his policy on talking to adversaries. In recent weeks, Obama and his aides have emphasized that, while there would be no "preconditions" for potential top-level meetings, there would be extensive staff-level preparations.

In the case of Iran, Obama said, "Preparation means that there are low-level talks in which there's clarity about our concerns around the nuclear weapons program but that we're willing to listen to their perspective."

Obama said his position has been consistent.

"I've said that with sufficient preparation I would be happy to meet leaders from other sovereign states including countries like Iran or North Korea or Venezuela," he said. "I have said that it is important to make sure that it begins with low-level diplomatic engagement and that there's a clear agenda so that any meetings would be constructive."

The World's Most Expensive Cellphones

The World's Most Expensive Cellphones

There is no cellphone more anticipated this year than the next generation of the Apple iPhone. But for some high rollers, the ultimate iPhone is a diamond-encrusted version from London jeweler Amosu. At 20,000 pounds ($39,600), the creation ranks among the world's most expensive phones.

Even a $40,000 iPhone seems tame compared with the 8800 Arte from Austrian designer Peter Aloisson. The luxury Nokia (nyse: NOK - news - people ) phone is posh to begin with, featuring designer ringtones and wallpapers and an 18-karat white gold finish. Encased in more than 680 pink and white brilliant-cut diamonds--sparing only the screen and slide-out keyboard--the embellished phone is a marvel. And, at 85,000 euros ($134,000), it's also the price of a college education.

In Pictures: 10 Lust-Inspiring Phones

These super high-end cellphones are a fascinating anomaly within the cellphone industry. While handset makers like Nokia, Samsung and Motorola (nyse: MOT - news - people ) churn out millions of $40 phones for developing markets such as China, Russia and India (see "Cellphones Your Wallet Will Love"), smaller firms like Amosu and Peter Aloisson focus on serving a much smaller population at the other end of the market.

It's a trend that shows no signs of halting. Fashion firms and automakers continue to show interest on the designer side. Last week, Christian Dior (other-otc: CHDRF.PK - news - people ) unveiled a $5,000 phone that resembles a sleek cosmetic compact. Watchmaker Tag Heuer is coming out with a $6,000 phone with a crocodile leather back. Porsche (other-otc: PSEPF.PK - news - people ) and Lamborghini have phones. Ferrari collaborated with Vertu, a U.K.-based luxury phone manufacturer owned by Nokia, on a special-edition phone last year.

Luxury firms say the steady march of cellphones across the globe is further expanding the market by popularizing the notion of luxury phones. "Mobile phones are becoming more and more an object of desire for people," says Alberto Torres, president of Vertu.

So what does a multi-thousand-dollar phone have that a $100 or $200 phone lacks? In the case of Vertu, whose phones range from $4,000 to $300,000, the difference begins with materials. Its handsets are crafted using scratch-proof sapphire glass screens, titanium frames, ruby bearings (for minimal wear and tear), fine leather and, in some models, gold and platinum.

Design inspirations are similarly highbrow. The brand's "Signature" line features d

etails from jewelry and watchmaking. Its "Ascent" line is based on luxury automobiles and incorporates carbon fiber and rubber. (Torres uses a red Ascent handset.) Vertu's newest phones, the "Constellation" line, are meant to evoke images of classical aviation.

Then there is the painstaking construction. Though Vertu phones incorporate Nokia technology, they are developed and manufactured separately. Some models have more than 500 mechanical pieces, all assembled by hand in Europe. Torres compares the process to that of other luxury goods, such as cars, watches and handbags.

The phones are manufactured with longevity in mind, both in terms of tough construction and classic design. Vertu tests some phones by running a car over them. The goal, says Torres, is to make the phones functional for 20 years, even if users are likely to swap phones long before then.

The combination has attracted high-profile fans, such as former Ferrari Chief Executive Jean Todt, Beyoncé, Gwyneth Paltrow, Catherine Deneuve and Michelle Yeoh. Strikingly, most of these people shelled out money for their Vertu handsets. "We are very careful about gifting phones," says Torres. "We think it's more important that people buy into the brand and have a commitment to it."

According to luxury phone firms, plenty of people can afford to buy their wares. Vertu had triple-digit growth in 2006 and 2007 and is now in expansion mode, opening more stand-alone boutiques, including its first U.S. shops, in the Wynn Las Vegas and Plaza (New York) hotels. Despite a slowing economy, Torres says, the U.S. is the brand's fastest-growing market.

He thinks luxury phones will eventually ring up billions in sales. But some luxury analysts say upscale cellphones and other electronic gadgets will never be as popular as designer watches, handbags and cars. The rapid pace of innovation in cellphone technology means phones don't appreciate in value the way a Rolex does, notes Pamela Danziger, a luxury marketing expert. And phones, which most people carry everywhere, but rarely secure to their bodies, can be easily lost or misplaced, making them risky investments, she adds.

"It is a very, very limited market," says Danziger.

The two exceptions, she says, are young men, who are increasingly forgoing luxury watches in favor of using cellphones to tell time, a habit that could make them more receptive to spending thousands on a phone. The other: wealthy people she calls "exfluents" (or "extreme affluents"), who "go for the best of the best in everything they purchase."

In the end, as with any extremely expensive accessory, buying a $10,000 phone isn't about logic. Torres compares luxury phones to vintage Ferraris. "They might not last forever or have the latest technology, but they're beautiful things to drive."