On July 9, British tech brand Nothing officially launched its first smartphone in China, pricing it at USD 799, the same as the iPhone 16. Alongside the flagship Phone (3), the company also released its first over-ear headphones, the Headphone (1), priced at RMB 2,299 (USD 321.9).
In terms of performance, the Phone (3) isn’t exactly a standout. It runs on the Qualcomm Snapdragon 8s Gen 4 processor, a chip commonly found in midrange models like the Redmi Turbo 4 Pro and iQoo Z10 Turbo Pro. The device features a triple-camera setup with 50-megapixel sensors and a 5,150-milliampere-hour battery that supports 65-watt wired and 15-watt wireless charging. These specifications fall short of what is typical in most flagship smartphones today.
But performance was never the brand’s primary focus. As a startup, Nothing has leaned more heavily on design and brand identity. The Phone (3) introduces a notable visual update over its predecessors. Its signature “Glyph” light strips now form a monochrome LED subdisplay called the “Glyph Matrix,” composed of 489 individually controlled LEDs. This screen can display pixel-style alerts for calls, app notifications, and battery status, and it supports user-defined animations.
The device also debuts a new software suite called Essential Space, which includes features like “flip to record” and “essential search.”
The smartphone industry has long operated in a cycle of performance upgrades. With diminishing returns on hardware improvements, the current challenge is to serve niche audiences with precision.
The generation that was born the same year the iPhone launched is now reaching adulthood. Raised on digital devices, these users want more than technical specifications, seeking emotional connection and personal expression. Nothing’s global user base has an average age of just 26, about ten years younger than that of many competing brands. More than 60% of its users cite design as the top reason for purchase. That alignment gives Nothing an edge among younger buyers who are growing tired of uniformity across established brands.
With this audience in mind, Nothing has gradually broadened its product lineup. This month’s debut of the Headphone (1), an over-ear model, reflects that direction. Unlike TWS (true wireless stereo) earbuds, which are often seen as purely functional, over-ear headphones are viewed more as a style choice.
Nothing’s global market share remains small, at just 0.2%. However, it is the only smartphone startup in the past decade to achieve any meaningful scale. While the industry remains dominated by major players, Nothing demonstrates that it is possible to build a business by serving niche segments.
The company is unlikely to become a dominant force in the market, and expectations are modest. But maintaining relevance with a focused user base would, in itself, be a notable accomplishment.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Yuan Silai for 36Kr.