Carl Pei's Nothing launches high-end smartphone, expands into premium over-ear headphones in global push

Indian Express

a day ago

Nothing, the hardware startup founded by OnePlus co-founder Carl Pei, launched its new £799 (Rs 79,999) Phone (3) flagship on Tuesday — its most expensive smartphone to date — entering competition with established players like Apple and Samsung, known for their high-end devices. The London-based company aims to gain market share in the flagship segment across markets such as the UK, India, and Europe by encouraging users to upgrade their devices and consider alternative brands.
'Phone (3) is built to show that there's still room for joy, identity, and creativity in the tech we carry every day,' said Nothing CEO and Co-founder Carl Pei during the product launch event in London. 'The phone builds on an idea we've had since Phone (1): turning the internal logic of the phone into something visual, emotional, and even architectural.'
The Phone (3) is Nothing's first true flagship smartphone and comes at a much higher price compared to the brand's previous devices, signaling a shift as the company looks to move beyond its niche image and enter the high-end segment in a global push, with availability in the US and Canada.
Nothing has traditionally sold smartphones in the $250 to $700 price range. However, with the Phone (3), the brand breaks that price barrier and enters the premium segment.
The Nothing Phone (3) continues to feature a translucent back and now includes three cameras on the back but they are placed in an unconventional layout. The phone has a 6.67-inch OLED display and is powered by a Qualcomm Snapdragon 8s Gen 4 processor. The brand is ditching the Glyph lighting system, previously used to alert users about notifications, and is introducing the new Glyph Matrix in its.
'The Glyph is not a gimmick. Eight out of ten of our users have the Glyph interface enabled from day one,' said Pei. 'We believe smartphones should work for you—not the other way around. So we built the Glyph interface to create a calmer, more expressive way to stay connected, letting you see what's important without turning on the screen.'
'With Phone (3), the Glyph evolves into something smarter and more capable. We call it the Glyph Matrix,'he continued. 'You still get the same glanceable signals—notifications for apps, contacts, timers, and more—but now it's more useful and customizable, because you can show much more content on a screen than on light strips. There are functional tools like a stopwatch, a visual selfie counter, and person-specific notifications, so you know who's calling or texting without even lifting your phone.'
Nothing, a smartphone maker backed by Google's venture capital arm and iPod creator Tony Fadell, was founded in 2021 and has gained a following among geeks and enthusiasts. Pei's startup initially made its name by offering affordable and mid-range smartphones with distinct, premium, see-through designs.
The largest market for Nothing is India, followed by Germany and the UK. In 2024, Nothing doubled its annual revenue, surpassing the $500 million mark, and recently reached total sales of $1 billion.
'With the Phone (3), the company is entering risky territory, directly competing with global giants. However, its differentiated positioning may help the brand gain some traction among tech enthusiasts and early adopters seeking a fresh alternative to legacy brands,' Ekta Mittal, Senior Analyst, Connected Devices at CCS Insight, told indianexpress.com.
Mittal agrees that Nothing is trying to break out of its niche image with the Phone (3) and is aiming to target mainstream consumers who are loyal to legacy brands such as Apple and Samsung. However, it would take years for a new brand like Nothing to match the level of brand recognition and close the brand equity gap that Apple and Samsung enjoy.
'Nothing is carving out its niche, targeting market share from Xiaomi, OnePlus, and others,' she said, adding that the brand might gain traction with the fall of Xiaomi, particularly in India.
Nothing also touts advanced AI features in its Phone (3), but they function more like a smart AI layer, rather than being something that overwhelms users.
This year, all major smartphone makers have been highlighting their devices' AI capabilities—trying to ride the wave of excitement around the technology and give users a compelling reason to upgrade to more expensive handsets. However, analysts have questioned whether AI features have enough appeal to actually drive people to spend more on a new upgrade.
Nothing also announced Headphone 1, new over-ear noise‑canceling headphones launching at $300.
The Nothing Headphone 1 features a distinctive design consistent across its products, featuring squircle-shaped earcups, see-through elements and support for a 3.5 mm audio cable. Its design resembles quirky cassette tapes, available in black or silver, with 'Nothing Headphone 1' branding on one earcup and 'Sound by KEF' on the other.
These headphones may appeal to users who prefer over-ear designs over true wireless earbuds. They offer cushioned comfort, active noise cancellation, and Spatial Audio—which makes them suitable for longer listening sessions.
However, like the Phone (3), they are priced in the premium category, aligning with competitors such as Bose and Sony. The higher cost likely reflects materials and build quality beyond typical plastic designs.
'Nothing entered as an accessory brand with TWS Ear (1), creating initial buzz and success. Its design and premium sound experience became core USPs, which it aims to replicate in the over-ear category,' Mittal said.
Mittal further added that the launch of the Headphone 1 is well‑timed to complement Nothing's smartphone ecosystem, as 'accessories represent an important supporting category with healthy margins and strong bundling opportunities for brands with sufficient strength.
But Nothing's Headphone 1 still costs less than Apple's AirPods Max and Sonos' Ace.
The main market for Nothing's audio products is the US, followed by the UK, Germany, and Japan.
Anuj Bhatia is a personal technology writer at indianexpress.com who has been covering smartphones, personal computers, gaming, apps, and lifestyle tech actively since 2011. He specialises in writing longer-form feature articles and explainers on trending tech topics. His unique interests encompass delving into vintage tech, retro gaming and composing in-depth narratives on the intersection of history, technology, and popular culture. He covers major international tech conferences and product launches from the world's biggest and most valuable tech brands including Apple, Google and others. At the same time, he also extensively covers indie, home-grown tech startups. Prior to joining The Indian Express in late 2016, he served as a senior tech writer at My Mobile magazine and previously held roles as a reviewer and tech writer at Gizbot. Anuj holds a postgraduate degree from Banaras Hindu University. You can find Anuj on Linkedin.
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