4 Minutes
Nothing, the London-based smartphone startup, is purposely rewriting the rules to win over Gen Z. With distinctive design, a transparent aesthetic and a tight focus on younger buyers, founder Carl Pei says the goal isn't to beat Apple and Samsung tomorrow — it's to carve a lasting slice of the market by speaking the language of a new generation.
Why Gen Z matters to Nothing
Entering a crowded smartphone market is never easy. Yet Nothing — valued at roughly $1.3 billion — believes its best path to scale is clear: target users who prize individuality and expressive design. "Our users are very young," Carl Pei told TechCrunch's Access podcast. "You can't try to catch everyone's attention at once, so you pick a lane."
Nothing's strategy leans into cultural identity. Gen Z buyers often choose devices as much for how they reflect personal style as for specs. That shift of emphasis helps explain why Nothing's average user age is about 26, while Samsung's average sits around 45. Apple still commands strong loyalty — roughly 70% of its user base falls between 18 and 44 — but Pei argues that younger consumers didn't grow up alongside Apple's meteoric rise and are more open to alternatives.
Design and pricing that break the template
Nothing's phones, including the Phone (2) and Phone (3), cost between $300 and $700 — a range that aims to balance aspirational design with accessibility. Their transparent rear panels, which reveal segments of internal hardware, are a deliberate departure from the uniform glass-and-metal look of mainstream models.
That visible inner-workings aesthetic isn't just a gimmick. It's a brand statement: hardware as self-expression. By resisting the iPhone template, Nothing wants to offer devices that feel complementary to, rather than direct copies of, market leaders.
Growth, scale and a realistic roadmap
Five years into its journey, Nothing has grown to around 800–900 employees and, according to Pei, is on track for close to $1 billion in revenue this year. Market dynamics still favor giants: Samsung held the top spot for global smartphone shipments in Q1 2025, with Apple in second place and several Chinese brands following.
Pei is pragmatic about competition. He doesn’t expect Nothing to overtake Apple overnight; instead, the company is focused on steady growth and experimentation. That means testing new form factors and product categories that won’t try to out-muscle Apple directly, but will sit alongside existing ecosystems and give users fresh choices.
What this means for consumers and the market
- More choice for younger buyers who want devices that signal identity.
- Design-led differentiation could push incumbents to rethink aesthetic and UX assumptions.
- Competitive pricing may nudge mid-range buyers to prioritize style alongside features.
Imagine a phone that looks as much like a fashion piece as a gadget — that’s the bet Nothing is making. Whether that bet reshapes the broader smartphone landscape depends on sustained execution, distribution, and whether the brand can scale without losing its cultural resonance.
What's next for Nothing?
Expect gradual expansion. Nothing will likely continue refining hardware, exploring new form factors, and leaning into a brand voice that resonates with younger audiences. For now, the company is content to grow deliberately rather than sprinting to unseat Apple or Samsung in the short term.
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