Carl Pei Claims Apple's Key Partner Foxconn Refused To Make Nothing Phone (1)

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Carl Pei Claims Apple's Key Partner Foxconn Refused To Make Its Phone

Carl Pei has revealed several challenges the startup faced while designing, developing, and manufacturing the Nothing Phone (1). He is the co-founder of the "flagship killer" brand OnePlus, and the present-day CEO of the Nothing company. Let's look at the difficulties, Pei and his team faced while making the Nothing Phone (1), and why the aggressively-priced premium Android smartphone is available in select regions only.

 

Foxconn Refused To Work With The Startup

Nothing's founder Carl Pei revealed his startup, called Nothing, faced a "plethora of challenges" in manufacturing its first smartphone. The most significant challenge Nothing faced was a refusal from Foxconn to manufacture the Nothing Phone (1). Foxconn is one of the chief suppliers of the Apple iPhone.

Pei claimed Foxconn refused to do business with Nothing. He added that Foxconn cited past smartphone industry failures, especially concerning startups.

"Every startup manufacturer has worked with Foxconn. But when it was our turn, they said no because every startup that worked with them failed. And every time a startup failed, Foxconn lost money on it, they were not able to recoup their costs."

Besides Foxconn, Nothing also faced challenges due to the COVID-19 pandemic. Although the startup's first Android smartphone was manufactured, there were severe time restrictions and an acute shortage of travel arrangements, especially in India and China.

Apple's Dominance In Smartphone Industry Is Crippling Startups?

The Nothing company successfully launched the Nothing Phone (1) in several regions, including India. The smartphone has been priced aggressively, and the company has attempted to differentiate the device from its competition with the innovative use of LED light strips.

Despite the visual appeal of the Nothing Phone (1) and its comparatively good specifications, the Android smartphone is still to launch in the US. Pei claimed the Nothing Phone (1), as well as the Android ecosystem in general, is being held down by Apple iPhone, and its ecosystem.

 

"There's a challenge with Android where iOS is just becoming more and more dominant. They have very strong lock-in with iMessage, with AirDrop, especially among Gen Z. So, that's a rising concern for me."

Pei claims Apple could end up grabbing as much as 80 percent of the market share in the US. Needless to say, this does not leave any incentive or even space for Android smartphone manufacturers.

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