Nothing’s Carl Pei has confirmed that the upcoming Phone 2 will launch in the US later this year. The CEO and co-founder described the 2023 flagship as “more premium” than the Nothing Phone 1, which Engadget saw as “an impressive debut” in our review.
Pei dropped several candies into a interview with Reverse. First, he says that the launch of the Ear 1 headphones in the United States was a barometer of American demand. “We are very excited about the US market because it is a big country,” Pei said. “If you look at our headset sales, about a third of that comes from the US and by not launching our phone in the US, we are potentially leaving a third of the volume on the table.” Pei describes the launch of the Phone 2 in the US as Nothing’s top priority this year.
Pei suggests that declining smartphone sales indicate that the US market is ripe for innovation. From a commercial point of view, [Apple and Samsung] You shouldn’t go too niche and try something completely different because you might alienate current users. That’s where smaller companies like ours can come in and try to do something different. It’s not that we’re smarter or that they can’t do it, but it just doesn’t make sense for them to do it.” However, while stagnation may play a role, the main reasons for the nosedive have likely been supply chain issues, inflation and an unpredictable economy.
Pei says red tape was the main reason Nothing didn’t launch Phone 1 in the US. US carriers require Android makers to comply with various porting and pre-installed apps, which requires significant resources. But the company’s rapid growth and proven ability to move volume have given it leverage. “When you make a smartphone for the US, you have to work with the carriers on certification and tailor some of its features to their operating system,” he said. “Before we didn’t have the resources for that, and now we do,” adds Pei, who said Nothing has grown from 200 employees in 2021 to 400 today.
While Pei doesn’t reveal many secrets about the Phone 2, it hints at a higher-end design than its predecessor. “We are developing a smartphone that is more premium than Nothing Phone 1, and software will be a big focus area for us.” However, he emphasizes that the Phone 1 was also a flagship phone. “Mobile chipsets have really gotten better in the last seven to nine years. This is why I want to avoid calling Phone 2 a flagship because that would mean that Phone 1 is not a flagship. Within our own portfolio of smartphones, the Phone 1 was a flagship in terms of the amount of care we put into the product. That’s why I used the word ‘premium’ [to describe the Phone 2] instead, meaning it’s a step up more premium, but still a flagship like the Phone 1.”
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