What They Say
A smartphone start-up, Nothing, led by an executive Carl Pei, who was a founder of OnePlus, has raised more than $200 million to launch its first smartphone which will be officially launched next month. The back of the smartphone is transparent, showing a wireless recharging coil. Backers include Alphabet’s venture capital arm, EQT Ventures and former Apple designer Tony Fadell.
The FT pointed out that one of the last big attempts to enter the market was by Andy Rubin, the co-founder of the Android mobile operating system, failed with sales estimated at less than 100,000 units in six months, based on data from IDC.
As Oppo, Vivo and Realme are all owned by BBK, the market is very concentrated with Apple, Samsung and Xiaomi and BBK having more than 75%.
Pei admitted that hardware vendors are a bit nervous because of previous start-up failures.
The company is working with O2 in the UK, Deutsche Telekom in Germany and Flipkart in India to distribute the phone when it launches, with ambitions to eventually launch in the US if Phone (1) sells well.
What We Think
You have to be bold or brave to attack such a fierce and competitive market. I wouldn’t put my pension savings into this kind of venture, though. (BR)
