Two years after Carl Pei left OnePlus, the buzzy smartphone model he co-founded with Pete Lau in Shenzhen in 2013, the entrepreneur is ready to launch a brand new smartphone together with his new firm Nothing, all from a brand new location.
“London is a good location as a result of there’s a lot expertise right here, particularly within the monetary providers sector,” Pei stated in a video name with the South China Morning Publish on June 29. “I imply, we’d like funding additionally to develop this firm in relation to design expertise, advertising expertise, branding expertise.”
As Pei prepares to launch the Nothing Cellphone 1 – stylised as “telephone (1)” – a lot of what he has to say about his new firm is targeted on the sensible actuality of constructing a start-up. It takes some huge cash and time to construct an organization into one thing that may seize the general public’s creativeness, particularly in an business as aggressive as smartphones.
Do you may have questions in regards to the greatest matters and tendencies from world wide? Get the solutions with SCMP Data, our new platform of curated content material with explainers, FAQs, analyses and infographics delivered to you by our award-winning group.
The Nothing Cellphone 1 makes use of a clear again, consistent with design language used with the Ear 1 wi-fi earbuds, the corporate’s first product launched final yr. Photograph: Nothing alt=The Nothing Cellphone 1 makes use of a clear again, consistent with design language used with the Ear 1 wi-fi earbuds, the corporate’s first product launched final yr. Photograph: Nothing>
With the Cellphone 1, which launches on July 12, Pei is working in a drastically completely different panorama than what existed out there when the OnePlus One launched in 2014. At the moment, the smartphone market was nonetheless rising shortly. The Android ecosystem was additionally extremely fragmented and taking part in catch-up with the iPhone. OnePlus took benefit of this with slick advertising promising to “by no means settle”, undercutting the competitors drastically on value for high-end {hardware}.
Immediately, Pei is as soon as once more launching a telephone from an unproven model, however there may be much less to disrupt. There are a lot of good Android telephones to select from, and the software program expertise is extra related than ever because of Google‘s efforts to streamline the expertise throughout gadgets. Furthermore, 15 years after the launch of the primary iPhone, the smartphone market is saturated and in decline. Smartphone shipments have been down 10 per cent yr on yr in Might to 96 million models, in keeping with Counterpoint Analysis.
Does any of this concern Pei? Not by his telling.
“I do know why the market is shrinking: as a result of there isn’t any purpose for shoppers to purchase the product,” Pei stated, blaming fewer adjustments and fewer innovation between smartphone fashions.
Pei additionally identified {that a} market downturn is much less prone to negatively have an effect on his firm than a big model with 10 to twenty per cent market share.
In some methods, this pragmatic perspective displays one other change for Pei, who had change into recognized throughout his time at OnePlus for hovering advertising rhetoric for every new machine. Immediately, Pei is extra up entrance about his technique of attempting to construct a model that may final lengthy sufficient to change into really disruptive. When requested about emergent applied sciences like digital actuality, Pei demurred.
“The smartphone will dominate our digital lives for the subsequent 5 to 10 years,” he stated. “There’s been a lot hype about various type elements, and none of it has actually panned out.”
Pei stated Nothing had a alternative between taking a giant threat on doubtlessly disruptive know-how – “the possible state of affairs is that we go bankrupt” – or to “let different folks take the chance first” and iterate on high of one thing that already exists. “When you wedge your self in,” Pei stated, “then you can begin investing in these initiatives which will or could not succeed.”
Nothing’s first product was the Ear 1 wi-fi earbuds, that includes a particular semi-transparent design, which has shipped greater than 560,000 models, in keeping with the corporate. “I believe that proof level was what allowed us to essentially get the sources we have to construct a smartphone,” Pei stated.
That design language is carried over to the Cellphone 1, the again of which is roofed with what the corporate calls the “Glyph Interface”, a sequence of LED lights within the form of a made up image.
The Glyph Interface, as Nothing calls it, is a sequence of LED lights on the again of the Cellphone 1, which flash in several patterns to inform customers about incoming messages, telephone calls, battery charging standing and extra. Photograph: Nothing alt=The Glyph Interface, as Nothing calls it, is a sequence of LED lights on the again of the Cellphone 1, which flash in several patterns to inform customers about incoming messages, telephone calls, battery charging standing and extra. Photograph: Nothing>
Whereas the lights have some performance, like flashing in several patterns when customers have notifications or a telephone name, its main function is to present it a novel visible design that stands out from the gang.
Pei stated Nothing sought to present the telephone a timeless design, which meant eschewing design language that was already in style at this time. Most smartphones don’t stand out from the gang, in keeping with Pei, as a result of they’re counting on a pattern set by Apple. “No matter Apple does, all people does,” Pei stated. “So by staying near the Apple design language, you are truly relationship your self to particular deadlines.”
Different components of the telephone are much less inspiring. It ships with a Qualcomm Snapdragon 778G+, a mid-tier 6-nanometre chip that can maintain it from going head-to-head with top-tier telephones like Samsung‘s Galaxy S22 and Google’s Pixel 6 in benchmark checks. However additionally it is anticipated to come back in at a extra affordable value, which feels proper out of the Carl Pei playbook.
With its concentrate on design, although, Nothing can be attempting to draw the inventive group, much like what Apple achieved.
“As soon as [Apple] grew to become related to creativity, it made common shoppers wish to buy and be part of that,” Pei stated. “Fifteen years in the past, when you sat in a restaurant utilizing a MacBook, you felt such as you have been particular or completely different. However at this time … even non-public fairness guys are utilizing Mac computer systems.”
Pei stated “a few of the greatest musicians and trend designers on the earth” have invested in Nothing. Final yr, Axel Christofer Hedfors and Sebastian Ingrosso, members of the music group Swedish Home Mafia, took half in a US$50 million funding spherical for Nothing. So far, Nothing has raised a complete of US$144 million.
Pei can be drawing inspiration from Apple in one other space: “We’re attempting to construct an alternative choice to the Apple ecosystem, as a result of the present choices available on the market should not actually satisfying the wants of the patron,” he stated. “We do not see ourselves as a smartphone firm, and I do not consider that we’re on the finish of innovation for our class.”
On this, although, Nothing just isn’t distinctive. Android rivals Google and Samsung need the identical factor and have much more sources. Samsung makes all the pieces from laptops to dwelling home equipment, whereas Google’s Nest is among the largest good dwelling manufacturers and its Chromebooks are actually a staple of the US schooling system.
Nothing, in the meantime, should depend on third-party gadgets. Pei pointed to the inclusion of controls for Tesla autos, which isn’t a part of an official partnership however is included due to what the corporate sees as “a giant overlap between Tesla followers and potential Nothing followers”.
The ecosystem technique can be one which has labored out properly for Beijing-based Xiaomi, however Pei dismissed the comparability.
“We admire [Xiaomi founder and CEO] Lei Jun as an entrepreneur and what he is achieved. However I believe one-and-a-half years in, we’re on a really completely different path,” he stated. “I believe we’re rather more design-led and brand-led and creativity-led. I do not actually see too many similarities.”
Nothing OS takes a clear method to Android, much like the sunshine contact that Carl Pei took at OnePlus, holding Google apps and favouring minimal modifications. Photograph: Nothing alt=Nothing OS takes a clear method to Android, much like the sunshine contact that Carl Pei took at OnePlus, holding Google apps and favouring minimal modifications. Photograph: Nothing>
Nothing can be distinct from most of the world’s high Android handset makers by not being primarily based in China, however it does have a group there. A Nothing spokeswoman primarily based in Shenzhen stated the native group has about 200 folks. This makes up most the corporate’s 300 employees members, however Pei stated having operations unfold throughout 5 nations permits Nothing to go wherever the expertise is.
The UK has design and financing, Sweden is a “inventive hub” and China has the {hardware} engineering and provide chain. The corporate can be performing some manufacturing in India, which has incentivised native smartphone manufacturing, and is working with music expertise in Los Angeles. Nothing is constructing a group in Taipei, as properly, and exploring choices in Vietnam, Pei stated.
Even when primarily based in Shenzhen, Pei had a extra worldwide focus than Chinese language smartphone entrepreneurs. Pei grew up in Sweden, so transferring to London brings him again to the continent the place he spent a lot of his life.
It additionally allowed Nothing to faucet into the UK’s expertise base. One of many firm’s greatest hires was Adam Bates, who was beforehand head of design at Dyson. “I genuinely consider we have now one of many world’s greatest industrial design groups,” Pei stated.
OnePlus additionally catered closely to worldwide shoppers, with a light-weight contact to Android modification that didn’t assist it achieve a lot traction at dwelling. The one place in China the place OnePlus was in a position to get a foothold was Hong Kong, the place Pei stated he’s now seeing a stunning quantity of curiosity within the Nothing Cellphone 1.
“I believe we will make waves within the Hong Kong market once more,” Pei stated. “CSL has an ideal bundle that they are launching with our product. I suppose what we’re doing is basically talking to the Hong Kong client.”
For now, although, the Cellphone 1 should depend on constructing momentum with out launching in two of the world’s most necessary smartphone markets: China and the US. Pei stated Nothing will finally launch smartphones within the US, however he’s ready for the appropriate alternative with a telecoms provider within the nation.
Nonetheless, Nothing has been producing a substantial quantity of consideration on-line. This might be as a result of Pei has saved most of the followers he made at OnePlus. Pei’s distinctive model of hype advertising may additionally be paying off: telling folks you make one thing that’s going to be higher not directly than anything available on the market can get folks speaking about it out of sheer curiosity to find out whether or not it’s true.
For Pei, this can be a gamble. If folks actually love the Cellphone 1, Nothing generates sufficient income to maneuver on to the subsequent factor and spend extra on innovating new options. If the enterprise doesn’t pan out, Nothing may go the way in which of Nextbit, which was purchased by Razer after its Robin telephone didn’t meet lofty expectations, or Important, the smartphone firm created by Android co-founder Andy Rubin in 2017 that has already light into obscurity. Nothing acquired Important’s mental property early final yr.
However when all the main points of the Cellphone 1 are lastly obtainable to the general public on Tuesday, one query will stay: Is it sufficient for a smartphone in 2022 to simply look completely different?
“I believe now we simply have to show ourselves that it may be an ideal product,” Pei stated, “and [that we can] ship sufficient amount to present our provide chain companions or traders conviction that this will change into one thing significant over time.”
This text initially appeared within the South China Morning Publish (SCMP), essentially the most authoritative voice reporting on China and Asia for greater than a century. For extra SCMP tales, please discover the SCMP app or go to the SCMP’s Fb and Twitter pages. Copyright © 2022 South China Morning Publish Publishers Ltd. All rights reserved.
Copyright (c) 2022. South China Morning Publish Publishers Ltd. All rights reserved.
