Nothing recently launched the Nothing Phone (1) in multiple markets around the world. The unique proposition of the smartphone is its design and glyph interface on the back. The company also promises a bloatware-free clean experience to the users, which would certainly attract some consumers who want a stock Android experience.
Here’s the thing though, the smartphone is largely untested. Of course, there are several unboxing videos and first impressions on the market, but the stability of the device and the operating system has yet to be tested. The smartphone isn’t out to the mainstream public yet, but orders will begin soon. Public feedback will be very crucial to the success of the smartphone.
Nothing is a UK based company and Europe is not an easy market to crack due to its complexity. Especially at a time like this when the UK economy is not doing very well due to the tensions in Europe.
Nothing as a brand is still largely unknown
It’s no surprise that consumers around the world are not very aware of the Nothing’s brand. Carl Pie is definitely a legend and a popular person, but in the tech world, it’s not a common name.
Jan Stryjak, Associate Director, Counterpoint Research, said ear (1) TWS earbuds performed well in terms of performance (sold just under a million units worldwide to date). Compared to this, Apple sold 17 million units of AirPods, that too in Q1 2022.
This is largely because consumers are not aware of Nothing as a brand. One thing that Nothing has proven to be good at is creating hype. Be it for the ear (1) or the phone (1), nothing has managed to get the tech enthusiasts super charged for its products.
Nothing to get strong competition
The competition on the European market is not small. Brands like Samsung and Apple control the majority of the market with companies such as Xiaomi, Oppo and other brands including Realme, Honor, Google and more behind.
According to Counterpoint Research Market Pulse data, Samsung had 41% of the sales share of the smartphone market in Western Europe in May 2022. Samsung was followed by Apple with a share of 27% and Xiaomi with a share of 11%. Oppo had a 10% share in the same month, while other brands such as Motorola (3%), Realme (2%) and more had negligible shares.
Nothing has to make a pie for itself in a tough market like this. It would only happen if the company is also launched in other European markets.
Nothing’s strategy
Stryjak said that working with the UK operators does not give anything a head start. The company has entered into partnerships with O2 in the UK and Deutsche Telekom in Germany, which will give the company some growth prospects.
According to Stryjak, nothing will follow a similar trajectory as OnePlus did in the early days with the invite-only model. But this also limits sales. However, it would help create a very loyal customer base.
Europe doesn’t exactly have a ball right now. There are economic challenges with record inflation levels affecting consumer spending. So, as affordable as the Nothing Phone (1) is, consumers will be careful about spending their money. This could affect the revenue the company expected.
