Nothing Phone 3 & Headphone 1: Launch details >> DevOm Pro

London-based hardware startup Nothing, founded by Carl Pei in 2020, has unveiled its latest offerings: the Phone 3, priced at $799, and its first on-ear headphones, the Headphone 1, priced at $299. These products, set to be available for pre-order on Friday and shipping from July 15, 2025, mark Nothing’s ambition to compete with tech giants like Apple and Google while staying true to its avant-garde design philosophy. With a focus on young, creative consumers, Nothing’s latest releases combine innovative aesthetics, artificial intelligence (AI) features, and a mission to reduce smartphone overuse, positioning the company as a disruptor in the saturated mobile device market.

The Phone 3: A Quirky, Premium Contender

The Phone 3 stands out with its unconventional design. Its transparent back reveals the internal printed circuit board, a signature feature of Nothing’s aesthetic. A small, circular display on the device showcases retro-style animations, such as an hourglass to signal an arriving Uber, adding a playful element to user interactions. Priced at $799, the Phone 3 is $100 more expensive than its predecessor, the Phone 2, marking Nothing’s entry into the premium smartphone segment, where it competes directly with Apple’s iPhone and Google’s Pixel devices.

Unlike conventional smartphones, the Phone 3 is designed to encourage less screen time. When placed face-down, it displays pixelated visuals, such as a clock, to provide notifications without tempting users to unlock the device and get lost in apps. This aligns with Nothing’s goal of helping users stay connected without disconnecting from the real world. Founder Carl Pei, in an interview, emphasized the company’s focus on blending “useful features with stupid, fun features” to appeal to a niche audience of young, creative tech enthusiasts.

The Phone 3 incorporates AI-driven features to enhance user experience. A “Flip to Record” function allows the device to transcribe and summarize conversations when face-down, while AI-powered search capabilities streamline access to contacts, photos, files, and web content. Despite these innovations, some fans expressed disappointment over the processor choice, though specific details about the chipset were not disclosed in the announcement.

The Phone 3 will launch in 40 markets, including the United States, where it will be available as an unlocked device compatible with T-Mobile and AT&T networks. However, support for Verizon is limited, which may result in reduced coverage or slower speeds for users on that carrier. The device will be sold through Nothing’s website and Amazon, with no carrier deals planned in the US at launch. Pei highlighted stronger growth opportunities in markets like India, Europe, and Japan, where the budget-friendly Phone 3a has seen strong demand, particularly in Japan.

Headphone 1: A Stylish Audio Companion

Nothing’s first foray into on-ear headphones, the Headphone 1, mirrors the Phone 3’s transparent design ethos. Priced at $299, the headphones feature distinctive controls, including a paddle and roller, which Nothing claims are intuitive and easy to use. Developed in collaboration with British audio brand KEF, the headphones deliver satisfying sound quality across various musical genres, appealing to Nothing’s tech-savvy audience.

In hands-on testing, the Headphone 1 showed strengths and weaknesses. The roller provided tactile feedback, and the paddle functioned as intended, but these controls were not necessarily superior to those of competitors like Apple or Sonos. The ear pads, less easily removable than those of rival products, tended to run warm, potentially causing discomfort during extended use. The fabric carrying case was also a weak point, showing visible wear and tear and featuring a zipper prone to snagging. Like the Phone 3, the headphones integrate AI features, such as the ability to send audio notes directly to the phone, enhancing connectivity with Nothing’s ecosystem.

Nothing’s Vision and Market Position

Nothing, now five years old, has carved a niche in the tech industry with its bold designs and contrarian approach. Pei, who previously co-founded OnePlus and grew it into a $3 billion company, launched Nothing to challenge the “boring” state of the smartphone industry. The company’s devices, including earlier models with programmable lights and transparent backs, have cultivated a cult following among tech enthusiasts. In 2024, Nothing doubled its annual revenue to over $500 million, with lifetime sales surpassing $1 billion. Pei projects the company will hit $1 billion in sales in 2025, though its market share remains modest at approximately 0.2%.

Nothing’s growth has been supported by $250 million in funding, including a $96 million round in 2023 backed by investors like Google’s venture arm and iPod co-creator Tony Fadell. The company is reportedly seeking an additional $100 million to fuel expansion but has no immediate plans for a public offering or sale, according to Pei. Instead, Nothing is focused on accelerating growth and innovation, building on the foundation laid in its first three and a half years.

A Unique Approach in a Competitive Landscape

Nothing’s strategy diverges from industry trends like foldable phones, pursued by competitors such as Samsung, Google, and Huawei. Even Apple is rumored to be developing a foldable device for release by 2026. Meanwhile, Samsung recently launched a super-thin handset with compromises in battery life and camera performance, and Apple is expected to unveil a slim iPhone in 2025. Nothing, however, prioritizes unique design elements and user experiences over following these trends. Pei explicitly stated that Nothing has no plans to develop foldable devices, tablets, or its own operating system, focusing instead on refining its smartphone lineup and exploring AI-driven software enhancements.

The company is also considering smart glasses as a potential future product, though no concrete plans have been finalized. Pei believes smartphones will remain the dominant consumer device for the foreseeable future, but Nothing is open to exploring what comes next in consumer tech.

Challenges and Opportunities

Nothing’s small market share poses challenges, particularly in encouraging developers to create apps for its unique features, such as the Phone 3’s Glyph interface or circular display.

The company is releasing a software development kit to support third-party app integration, but previous efforts have seen limited uptake due to Nothing’s niche position. Additionally, the Phone 3’s limited compatibility with Verizon may hinder its appeal in the US, where carrier support is critical for widespread adoption.

However, Nothing’s focus on markets like India, Europe, and Japan offers significant growth potential. The success of the Phone 3a in Japan, a market typically favoring premium devices, underscores the brand’s ability to resonate with diverse audiences. Nothing’s sub-brand, CMF, also plays a key role, offering affordable devices like earbuds and smartwatches priced between $300 and $899, broadening the company’s appeal.

Conclusion

With the Phone 3 and Headphone 1, Nothing continues to challenge the status quo in consumer electronics. The Phone 3’s transparent design, retro animations, and AI features reflect the company’s commitment to creativity and user-focused innovation. The Headphone 1, while not without flaws, complements Nothing’s ecosystem with its unique aesthetic and solid audio performance. As Nothing competes with industry giants, its ability to maintain rapid growth, secure funding, and innovate will determine its long-term success. For now, the company’s quirky, bold approach is winning over a growing base of tech enthusiasts, proving there’s room for a fresh perspective in the crowded tech landscape.