This was stated by the founder of Nothing Carl Pei. CNBC that one of the biggest challenges I faced in developing my first mobile phone, the Nothing phone (1), was when turned to Foxconn for help (chief in charge of assembling the iPhone) to manufacture their smartphones, and the company rejected the application justifying the reason, which, of course, is very different from what we imagined.
Foxconn, which has no exclusivity with Apple and collects devices from other brands, refused to provide its service to Nothing. alleged failures with companies like Carl Pei, and not because Nothing Phone (1) had a design very similar to the iPhone of recent years, as you probably think. According to the firm’s CEO, the Taiwanese didn’t want to do business with them because all the startups that went through the same process “failed,” and because of that, Foxconn is losing money.
“All the start-up manufacturers have worked with Foxconn. But when our turn came, they refused, because all the startups that worked with them failed. And every time a startup failed, Foxconn lost money on it, they couldn’t recoup their costs.”
Nothing, despite this slight inconvenience, can boast of having sold more than a million units of all its products, and Total sent 500,000 phones Nothing (1) since its launch since July of this year. Now they are preparing to enter the United States.
The Nothing (1) phone will enter the North American market to try and compete with the iPhone.
As a reminder, the London-based company has just released Nothing Phone (1) for sale in Europe and some Latin American countries, but is ready to expand its marketing in the United States.. They haven’t done this before because, according to Karl Pei, in the US market requires “a lot of additional tech support” with the goal of “supporting all carriers and their unique settings they need to do in addition to Android”. At the moment, he said, he is negotiating with carriers in the United States to distribute his products.
Selling the Nothing Phone (1) or other products in the US market could also be key to achieving the goal set by the brand’s CEO: be profitable in 2024. “This is definitely a market that already has a lot of interest in our products. And if we launch our smartphones there, I’m sure we can achieve significant growth,” Pei notes.
For now, even though they expect their revenue to increase tenfold in 2022 compared to last year, Nothing reports losses, including due to currency exchange. “We pay a lot of our cost [costo de los bienes vendidos] in dollars, but we earn in pounds, in euros, in Indian rupees, so everything depreciates against the dollar.
Source: Hiper Textual
