Carl Pei 's British technology company Nothing plans to establish itself in the US and compete with Apple, specifically the iPhone .
The startup of Carl Pei – co-founder of Chinese cellphone maker OnePlus – is in early discussions with American carriers to launch a new smartphone in the US, according to CNBC.
In July, Nothing first introduced the Phone (1), a mid-range device with a design, features, and price that matched Apple's entry-level iPhone SE
So far, the company has only launched its smartphone in Europe, the Middle East, and Asia – not in America or Canada.
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“The reason we didn’t launch in the US is because it requires additional technical support, to support all the carriers and their unique customizations that they have to make on top of Android,” Carl Pei explained in an interview with CNBC. “We felt like we weren’t ready before.”
“We are now in discussions with some carriers in the US to potentially launch a future product there,” said the Chinese-Swedish entrepreneur.
Large companies, like Samsung, have partnerships with carriers in the US, so it's harder for new or small companies to compete with them.
“It’s definitely a market where there’s already a lot of interest in our products. And if we launch our smartphones there, I’m sure we’ll achieve significant growth,” said the Nothing founder.
The company expects its revenue to grow from $20 million in 2021 to $250 million in 2022. It has also doubled its workforce to more than 400 employees. However, the company is still not profitable.
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“The goal is to be profitable by 2024,” Pei said. “We are not profitable right now.”
Nothing vs Apple: Carl Pei wants to compete with the iPhone
In the US, Pei wants to compete with Apple's iPhone, but it will be a difficult task.
“There’s a challenge with Android, as iOS becomes more and more dominant. They have very strong lock-in with iMessage, with AirDrop, especially Gen Z. So that’s a growing concern for me,” he said.
"There may be a time when Apple has 80% of the overall market and that just doesn't leave enough room for Android- to continue to play," he said.
Pei said he sympathizes with Elon Musk, Twitter's new CEO. Musk has recently taken issue with Apple over its App Store, including its 30% "tax" on in-app purchases.
Nothing: Difficulties
According to Pei, his company faced many difficulties in selling its products. For example, it faced a major problem when it approached Foxconn – Apple’s largest supplier – to help manufacture its phones.
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According to Pei, Foxconn chose not to partner with Nothing due to previous startup failures in the smartphone industry.
“Every startup manufacturer has worked with Foxconn,” Pei said. “But when it came to our turn, they said no because every startup they worked with failed. And with every failure, Foxconn lost money and was unable to recoup the costs.”
Covid restrictions around the world also presented a major hurdle for Carl Pei's Nothing. In India, where Nothing makes its phones , engineers were unable to move and travel due to the restrictions, with Pei saying the company had to manage its factory remotely.
Despite the difficulties, Nothing has sold over 1 million products to date worldwide, with the Ear (1) headphones reaching 600,000 sales and the Phone (1) reaching 500,000.
The business is still small and unfortunately faces an ominous financial future, where people are forced to minimize their spending.
A few words about Nothing
Nothing Technology Limited is a consumer electronics manufacturer based in London, England. It was founded by Carl Pei. Investors in the company include iPod inventor Tony Fadell, TwitchKevin Lin, Reddit CEO Steve Huffman, and YouTuber Casey Neistat. On February 25, 2021, the company announced Teenage Engineering as a founding partner, who are primarily responsible for the brand's design and products. Nothing's first product, the "ear (1)", was released on July 27, 2021.
Source: www.cnbc.com
