Headquartered in London, the consumer tech startup Nothing is placing a significant wager on the AI-powered devices market. This strategic move is supported by the company’s robust engineering team’s capacity to swiftly adapt to the ever-evolving dynamics of the market, as stated by a senior company official in an interview with Moneycontrol.
According to Akis Evangelidis, co-founder of Nothing, the company currently boasts one of the most formidable teams in terms of innovation, encompassing both software and hardware expertise. He emphasised the uniqueness of the talents within the team during an interview with Moneycontrol.
Evangelidis observed the game-changing influence of AI-powered devices like Rabbit and Humane, driven by voice commands, calling it a fascinating domain. He also questioned whether smartphones are the ideal interface for Generation AI, noting the ongoing search for the best user interface. Despite this uncertainty, he expressed confidence that current advancements will democratise technology access.
Humane is currently engaging in discussions with Indian telecommunications companies to enter the Indian market.
Evangelidis said that Nothing will begin exporting its smartphones from its Chennai factory in a gradual manner. He emphasised the significance of the Indian market, stating that they will not only produce for domestic consumption but also for global distribution. “I think that’s going to be the sort of course of direction right here,” Evangelidis added.
When asked about the possibility of establishing an R&D centre in India, Evangelidis expressed that it’s a logical progression for Nothing to expand its team of hardware and software engineers in the country, pointing out the ongoing efforts in building a team there over the past few years.
Evangelidis mentioned that Nothing employs hardware engineers at its manufacturing facility in Chennai, where distinct manufacturing processes are integrated into the factory. The company’s R&D team operates out of London, UK. Initially, Nothing prioritised hardware and design innovation to distinguish itself from competitors in the smartphone industry. Criticising major smartphone manufacturers for playing it safe and neglecting innovation, Evangelidis highlighted how this approach hindered global market growth. “We are now building a unique user experience on the hardware and software sides. We are offering a clean user experience, yet bringing the story of Nothing visual identity and rethinking how we interact with the smartphone,” he stated.
The company plans to enter the mid-premium segment with its latest smartphone, the Nothing Phone (2a), priced at under Rs 25,000, directly competing with OnePlus’ Nord brand. Previously focused on premium devices such as Nothing 1 and Nothing 2, Nothing is now shifting its focus. Offers may accompany the product launch on March 5 in India.
Evangelidis expressed that the non-flagship segments are predominantly influenced either by value for money or an unnecessary race for extravagant specifications. However, he noted that this approach holds less significance for Nothing at present. “We are now entering this category by delivering the same unique experience you would find on the flagship level without their spec configuration,” he said.
The executive explained the rationale behind introducing the latest phone in the sub-Rs 25,000 price category, stating that after observing the response to Nothing Phone (2) upon entering the flagship segment, it was apparent that some individuals opt not to purchase at such a high price point. Instead, they prefer a product that maintains essential functionalities but at a more affordable price.
Evangelidis believes there is a demand for Nothing products at more accessible price points. He expressed confidence that Form Two will start driving volumes for the company, although he did not disclose the sales target. Additionally, Nothing is exploring more product categories under its sub-brand CMF to expand its presence in India.
He noted that while the Nothing brand focuses on maintaining a distinct user experience, design, and software, this strategy limits the number of product categories they can explore. However, with CMF, simply ensuring the fundamentals are in place allows for differentiation. “And, this opens the door to multiple product categories we can enter. The opportunity is big even though people say the market (accessories) is supersaturated. There is an opportunity to make better products,” he added.
Evangelidis suggested that once Nothing grows in India, they might start making wearable and hearable products locally under their CMF brand.
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