Nothing Phone (1) could come to the US -- but not soon

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in iPhone
The Nothing company wants to launch its Phone (1) in the US, and is talking with carriers -- but it's not going to be taking on the iPhone on its home turf for years.




Nothing Phone (1) launched in Europe, Asia, and the Middle East, in July 2022, but not in the US or Canada. Now the Nothing company, backed in part by "father of the iPod" Tony Fadell, says that it looking to launch in the States at some point.

According to CNBC, Nothing founder Carl Pei says that "we felt we weren't ready before," but has now begun some talks.

"The reason why we didn't launch in the U.S. 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 told CNBC. "Now we are in discussions with some carriers in the U.S. to potentially launch a future product there," he continued.

Pei would not name the carriers, nor specify whether the plan was for the Phone (1) or, more likely, a future model.

"[The US is] definitely a market where there's already a lot of interest for our products," he said. "And if we launch our smartphones there, I'm sure we could obtain significant growth."

Nothing already sells its Ear (stick) headphones in the US, with Pei saying that a third of all sales come from the States. He says that smartphones represent a harder sell because of the strength of iOS in the US.

"There's a challenge with Android where iOS is just becoming more and more dominant," said Pei. "They have very strong lock-in with iMessage, with AirDrop, especially among Gen Z. So that's a rising concern for me."

"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," he continued.

Pei adds that in a couple of years time, he believes Nothing is going to "have a serious think about this problem [of iOS dominance] and how we tackle it." At some point, "it's going to create a ceiling to our growth."

Economic and manufacturing problems

In his CNBC interview, Pei revealed that the Nothing company had approached Apple's iPhone manufacturer, Foxconn about producing the Phone (1). Foxconn refused, though, reportedly stating that it no longer works with any startups, following previous efforts where it consistently lost money.

Nothing is also losing money, but in part because of the global economic situation.

"The goal is to be profitable in 2024," Pei said. "We are not profitable right now. And this year was made even harder due to the foreign currency exchange."

"We pay a lot of our [cost of goods sold] in USD but we make money in pounds, in euros, in Indian rupees," he continued, "so everything devalued against the USD."

Nonetheless, Pei told CNBC that Nothing will have an estimated $250 million in revenue for 2022. He also said that half a million of the Phone (1) have been sold.

That's a small fraction of the at least 220 million iPhones that Apple expects to make in 2022.

As well as facing a competitor with such sales, Nothing will still need to navigate all of the same US technology issues it didn't feel ready for before.

If it resolves them, and if its announced discussions with carriers progress, it's still going to be some years before there is a Nothing Phone (1) on sale in the US.

Read on AppleInsider

Comments

  • Reply 1 of 6
    thttht Posts: 4,720member
    Why does this company get so much air time again? 

    I guess the novelty is that it's a "brand new" smartphone company? He comes with a OPPO or was it OnePlus pedigree and therefore has some credibility for success?
    watto_cobra
  • Reply 2 of 6
    lkrupplkrupp Posts: 10,325member
    Yet another pretender to the throne that will fail miserably. Sure the novelty will sell at first to the techie crowd but in the end it will wither and die. The competition is good argument simply does not apply here, and neither does the evil duopoly argument. Nor does the “the iPhone has gotten boring” trope. It’s just another Android phone after all. 
    edited December 2022 radarthekatwatto_cobraravnorodom
  • Reply 3 of 6
    Nothing to see here. Please disperse.
    watto_cobra
  • Reply 4 of 6
    Apple is making huge money on iPhone. Despite high R&D cost and very generous services, Apple is still making over 40% profit margin. People and companies are extremely jealous and envy. They like to take a share no matter how small it is. 
    watto_cobraravnorodom
  • Reply 5 of 6
    chasmchasm Posts: 2,611member
    I took a closer look at the Nothing Phone earlier this year when I had an opportunity.

    I’m admittedly biased towards iPhones, but I found the Phone One to be … “Nothing” special.

    It’s a medium-level Android phone with blinky lights on the outside casing. A cute touch, I guess, but mostly it’s a novelty, and of course its main distinguishing feature requires you not to put an opaque case on it. That’s really pretty much it. The use experience is midline Android meh.

    Is it better designed that most midrange Android phones? If you like light-up things, I’d say yes. Without that, it’s pretty generic.

    I’m befuddled at how much hype it has managed to get, but maybe that’s why they’re losing money …
    ravnorodom
  • Reply 6 of 6
    Oh god. Can’t they have a better name for a company? Especially a startup? Just to write a review for this phone already sounds dumb: The neon lights look great and thanks for Nothing. Or just a regular conversation: Hey Buddy, what u got? Nothing. Hey, is this a good phone? Nothing is great. 🙄

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