Those who thought prices for mobile technology were going down were evidently mistaken: a London bespoke luxury goods firm, Luvaglio, has just announced it is to sell tailored laptops for a cool $1m (about £500,000).

The firm is the brainchild of chief executive Rohan Sinclair Luvaglio, and evidently he is a real person and isn't joking. But while outfitting a computer for Windows Vista might be expensive, it shouldn't cost as much as an entire data centre, and indeed the technical specifications are only part of the justification for the laptop's cost.

In an interview this week with Gizmag, a website dedicated to technologies primarily designed to cost money, such as an "intelligent travel humidor" or a bullet-proof Range Rover, Luvaglio insisted he did not want to "diamond encrust the entire thing simply to make it expensive", but indeed diamonds do play a key part in the laptop's appeal.

The laptop comes with a "rare coloured diamond piece of jewellery" which activates the laptop and acts as a security identification.

"We have access to diamonds that are simply rare and near impossible to get hold of, so are able to offer a very embodied choice," Luvaglio said.

The laptop comes with a presentation case and Luvaglio plans that potential buyers will be able to visit showrooms in "two or three well known upmarket stores" to tailor their machine with a selection of materials, finishes and accessories.

However, initially Luvaglio is aiming to sell the laptops only to existing customers of its previous luxury work.

Of course, the laptops will also include high-end technology, including a 17-inch widescreen LED display with a specially designed anti-glare coating, 128GB of Solid State Disk space and a slot-loading Blu-Ray drive.

If that weren't enough to get you to hand Luvaglio your next 10 years' salary, the laptop also has a built-in screen cleaning device, according to Gizmag.

Luvaglio may have been inspired by Nokia, which sells diamond-encrusted mobile phone handsets via its Vertu subsidiary. The subsidiary has about 250 employees, hand-crafts its phones in the UK and Germany and has more than 320 retail outlets worldwide. Vertu's first handsets, by contrast, sold for a mere 24,000 euros.