The smartphone industry is entering a transformative phase, and Carl Pei, founder and CEO of Nothing, believes India will play a central role in the company’s next growth chapter. Speaking during the launch of Nothing’s first company-owned retail outlet in Bengaluru, Pei discussed the brand’s retail ambitions, its approach toward foldable devices, and how artificial intelligence could reshape smartphones by 2028.
India Becomes Nothing’s Biggest Strategic Market
Pei described India as the brand’s most important market and a natural choice for expanding its retail presence. The newly launched flagship store in Bengaluru’s premium Indiranagar locality marks only the second physical store globally, following the company’s first outlet in London.
Unlike traditional tech retail stores, the new Nothing outlet focuses on brand experience rather than just sales. Pei explained that many retail spaces have replicated the polished look popularized by Apple, but Nothing wanted to offer something visually distinct and emotionally engaging. The store features design elements inspired by research labs and production lines, including a conveyor-belt style product delivery system to recreate the manufacturing journey for customers.
Pei believes physical stores help brands create stronger emotional connections with users. While online sales continue to play a major role, he emphasized that many consumers still prefer to experience devices firsthand before purchasing, making an offline presence essential for long-term growth.
Competing in a Crowded Smartphone Market
India’s smartphone landscape remains highly competitive, with strong dominance from brands like Samsung and Vivo, while the premium segment continues to be largely controlled by Apple. Despite this, Nothing has shown strong momentum. According to data from Counterpoint Research, the company recorded rapid year-on-year growth in India during late 2025, signaling strong consumer interest in its unconventional design philosophy.
Pei’s experience as a co-founder of OnePlus also plays a crucial role in shaping Nothing’s expansion strategy. He has adopted a similar step-by-step approach, focusing on building brand loyalty before aggressively expanding product categories and retail operations.
In addition to smartphones, Nothing is growing its ecosystem through accessories and budget-focused products under its sub-brand CMF by Nothing, which is designed specifically for value-conscious consumers in markets like India.
No Flagship or Foldable Phone Plans for Now
Despite industry pressure to release premium flagship models annually, Pei confirmed that Nothing will skip launching a new flagship smartphone this year. Instead, the company will focus on its mid-range series, which continues to perform strongly in India.
Pei believes flagship devices should introduce meaningful innovation rather than incremental hardware upgrades. According to him, simply adding a faster processor does not justify releasing a flagship model. He also expressed skepticism about foldable smartphones, stating that the segment remains relatively small compared to the overall global smartphone market.
He pointed out that foldable devices mainly attract older, business-oriented consumers, while Nothing focuses on younger, design-conscious users. Pei also noted personal reservations about foldable screen creases, which he believes still affect user experience.
Expanding Global Retail Presence
Nothing is planning to open additional physical stores in major global markets, including New York and Tokyo. However, Pei emphasized that store expansion will remain gradual, ensuring each location strengthens brand identity rather than simply increasing retail footprint.
He views retail stores as powerful marketing tools that allow consumers to engage directly with products and brand culture. Over time, Nothing aims to balance online convenience with immersive offline experiences to cater to diverse consumer preferences.
AI Could Reshape Smartphone Operating Systems
Looking ahead, Pei believes artificial intelligence will drive the next major technological shift in consumer electronics. He predicts that by 2028, smartphones could undergo a transformation similar to the transition from feature phones to smartphones.
Currently, AI is largely layered onto existing operating systems such as Android and iOS. However, Pei anticipates the emergence of fully AI-native operating systems that fundamentally redesign how users interact with their devices. Instead of app-focused interfaces, future systems could rely on intelligent automation, predictive interfaces, and contextual user interactions.
Long-Term Vision for Nothing
Pei believes Nothing’s success will depend on balancing innovation with scalability. He highlighted that smaller companies often move faster creatively, while larger firms benefit from engineering and manufacturing scale. Nothing aims to combine both advantages while targeting younger consumers who value design, individuality, and emerging technologies.
As artificial intelligence, retail innovation, and smartphone design continue evolving, Nothing is positioning itself as a brand willing to challenge industry norms while focusing on long-term user experience rather than short-term product cycles.