Nothing’s Phone (1) didn’t get an official US release when it launched in July 2022, but that should change for the second version of the company’s popular seamless Android handset, according to CEO and co-founder Carl pee.
Talk to ReversePei said the UK-based company will make the US market its number one priority for the phone (2), which is due out later this year.
“We’re developing a smartphone that’s more premium than the Nothing Phone (1) and software will be a big area of focus for us,” Pei said. “When you make a smartphone for the United States, you have to work with the carriers on certification and adapt some of their features to your operating system. We didn’t have the resources for that before and now we do. “
Nothing has sold more than a million products worldwide, with its Ear (1) headphones selling 600,000 units and the Phone (1) reaching 500,000 shipments. According to Pei, about a third of its headphone sales(1) come from the United States, and by not launching its next phone in the country, “we are potentially leaving a third of the volume on the table.”
A recent report from IDC indicated that annual smartphone shipments saw their largest year-over-year decline during the holiday quarter, and although supply chain constraints and inflation played a major role, Nothing’s CEO sees a lack of innovation as a contributing factor.
According to Pei, the company’s research indicates that “[U.S.] consumers as a whole are quite bored and indifferent [with existing phones]and “foot traffic in stores for people buying new phones hasn’t increased.”
“From a business perspective, [Apple and Samsung] shouldn’t go very niche and try something completely different as they might alienate current users. This is where small businesses like ours can step in and try to do something different. It’s not that we’re smarter or that they can’t, but it just doesn’t make sense for them to do it.”
Pei thinks Nothing’s material design is the main reason why iPhone users are “come back to Android through our brand”. However, with iOS becoming increasingly dominant in the United States, Pei acknowledged that it won’t be easy for his company to compete with Apple in its home turf.
Nevertheless, Nothing’s mobile team has grown from five engineers to almost 100 people in a year, and the CEO now believes that the company’s software innovations will eventually catch up on its hardware. “It’s going to take time; it’s going to be step by step, so we’re not going to see the whole vision unfold immediately.”