Nothing Plans to Launch Smartphone in US to Take on Apple's iPhone

[MacRumors]

UK-based tech company Nothing plans to launch a smartphone in the US to directly compete with Apple's iPhone, according to a new report out today.

In an interview with CNBC, Nothing CEO Carl Pei said the startup is in "early conversations" with American cellular carriers about launching a new phone in the US, but he stopped short of naming any of the carriers or the phone model.

Nothing in July launched its Phone 1 smartphone in over 40 markets, including the UK, Japan, India, and countries in mainland Europe. At the time, the company said it had no plans for a widespread release of the Phone 1 in the US.

"The reason why we didn't launch in the US is because you need a lot of additional technical support, to support all the carriers and their unique customizations that they need to make on top of Android," Pei explained in an interview with CNBC. "We felt that we weren't ready before."

"Now we are in discussions with some carriers in the US to potentially launch a future product there," said the Chinese-Swedish entrepreneur.

Pei also acknowledged that it won't be easy for his company to compete with Apple on its own turf. "There's a challenge with Android where iOS is just becoming more and more dominant. They have very strong lock-in with iMessage, with AirDrop, especially among Gen Z. So that's a rising concern for me," he said.

"There might be a time where Apple is like 80% of the overall market and that just does not leave enough space for Android-based manufacturers to keep playing," Pei added.

Nothing has sold over 1 million products to date globally, with its Ear (1) earbuds selling 600,000 units and the Phone (1) reaching 500,000 shipments.

The company expects its revenues to jump more than tenfold in 2022 — from about $20 million in 2021 to an estimated $250 million this year, according to figures shared with CNBC. However, the firm is still losing money, which Pei says is partly due to the foreign currency exchange.

"We pay a lot of our COGS [cost of goods sold] in USD but we make money in pounds, in euros, in Indian rupees — so everything devalued against the USD," said Pei. "The goal is to be profitable in 2024."

Update 12/5: "Phone (2) isn't launching anytime soon," Pei said in a tweet, shortly after this article was published. "We're focused on doing a few things well, and won't churn out dozens of products a year like many others." Pei's comments suggest that if the "future product" planned for the US market is the Nothing Phone 2, it won't arrive for a while yet.

Article Link: Nothing Plans to Launch Smartphone in US to Take on Apple's iPhone

 

[russell_314]

I expect this will be a big “nothing burger” 😂

Seriously does anyone think this is going to actually compete with the iPhone?

 

[nikaru]

My wild guess....nothing phone will remain nothing.

 

[star-affinity]

I must say it seems you get quite a lot for the money with the Phone 1. A colleague has it and we were discussing how much that 120 Hz display does for the user experience, something you have to jump to iPhone 14 Pro to get as the non-pro iPhone 14 doesn't have it.

Battery life wise I think it's not as good as the iPhone and the performance isn't even close (looking at benchmarks), but I'm not sure how much that is noticeable in practice – seems to be pretty quick to me. Review here:

Nothing Phone 1 review: A bright debut

Nothing's first phone has a flashy look but a modest spec sheet and low asking price. Find out more in this Nothing Phone 1 review.

www.androidauthority.com

 

[George Dawes]

They just don't get it do they ?

It's not just the hardware , it's the whole big picture

 

[TheYayAreaLiving 🎗️]

They can launch the new smartphone in the US but better believe it will be nothing in the US. iPhone is too strong! The sales will be nothing for this nothing phone. Good luck 🍀

 

[MathersMahmood]

Good luck to them hope the phone is a success. Both phones are clearly intended for different audiences but the Nothing phone offers incredible value in that package.

Interested to see what the next model will have. The CEO posted a very interesting and honest video when comparing it to the iPhone.

 

[5580463]

How do you compete with the iPhone when your main selling points are a custom rom and some visual novelties?

 

[Mrjoedot]

Nothing is completely different market than iPhone. To say Take on iPhone is a PR stunt

 

[Kierkegaarden]

Ok, I get it — “Nothing” refers to profit. That might be a problem.

 

[Bustycat]

Nothing is nothing.

 

[seek3r]

"The reason why we didn't launch in the US is because you need a lot of additional technical support, to support all the carriers and their unique customizations that they need to make on top of Android," Pei explained in an interview with CNBC. "We felt that we weren't ready before."

Putting carrier bloatware into the phone doesnt seem like the best selling point to me

 

[rukia]

Android and iOS are two completely different ecosystems and markets. One would think more direct competitors would be Samsung and Google.

 

[MathersMahmood]

Android and iOS are two completely different ecosystems and markets. One would think more direct competitors would be Samsung and Google.

Not really. iOS is a mobile operating system and so is Android.

Android runs on phones and tablets just like iOS does so its the same market.

 

[russell_314]

Putting carrier bloatware into the phone doesnt seem like the best selling point to me

That’s one reason I like iPhone. No bloatware

 

[Jzvm]

Not really. iOS is a mobile operating system and so is Android.

Android runs on phones and tablets just like iOS does so its the same market.

But they are more likely to get Android users to buy the Nothing Android phone than to get iPhone users to switch.

Most people have picked their platform by now. It would take a very significant advantage in hardware features or price to convince a lot of people to switch.

The title should be that they are launching the phone here to take on Samsung.

 

[ELman]

That’s one reason I like iPhone. No bloatware

Except for all the Apple apps that many never use.

 

[Six0Four]

I've seen 33,543 iPhones in the wild. I have seen zero "Nothing" phones.

Good luck with that.

 

[djcerla]

It’s an Android phone. It will compete with Google and Samsung.

 

[Kebabselector]

Good luck lads, I'm in the UK and never heard of your phone.

 

[Adamantoise]

That’s one reason I like iPhone. No bloatware

Well this depends on how you personally define bloatware. I think many first party apps (yes even those by Apple and Google) meet my criteria to be considered bloatware.

Apps I never use and for some reason cannot remove from my phone.

 

[Abazigal]

Putting carrier bloatware into the phone doesnt seem like the best selling point to me

It's probably a compromise they have to make in order for carriers to agree to stock their phones. Not everyone has the bargaining power that Apple does, and even they cave in to carriers every now and then.

 

[Abazigal]

"There might be a time where Apple is like 80% of the overall market and that just does not leave enough space for Android-based manufacturers to keep playing," Pei added.

Now won't that be a sight?

 

[Beautyspin]

That’s one reason I like iPhone. No bloatware

Depends on what you consider bloatware. Maps is something I would not use, so it is bloatware. So, are many of the first-party Apple apps.

 

[I7guy]

Depends on what you consider bloatware. Maps is something I would not use, so it is bloatware. So, are many of the first-party Apple apps.

There’s a common definition and then a personal definition. First party useful apps where there was no enticement of money were never considered bloatware in the common definition.