Nothing CEO Says His Smartphone Startup Is Targeting Gen Z

smartphone industry difficult for newcomers to penetrate. It is littered with failed attempts.

But Carl Pei, CEO of Nothing, a smartphone startup now valued at $1.3 billion, thinks he may have found a way in.

“Our users are very young,” Pei said in an interview. Alex Heath Access podcast this week. “In the beginning, it’s almost impossible to be popular with everyone in the world, so we need to choose a path.”

Pei said the company has found that its products resonate best with younger consumers, who are motivated by a desire to “be different” and find “their own personality” in the devices they choose.

The power of the Apple brand is as strong as it ever was among younger generationhe said because they didn't grow up watching him grow.

Pei said his company's average user is 26 years old. Meanwhile, Samsung users, for example, are on average 45 years old, he said. According to 9 to 5 Mac, a news site covering Apple products, about 70% of Apple users are between the ages of 18 and 44.

As of the first quarter of 2025, Samsung leads the global smartphone market, with Apple in second place. These are the top two companies, followed by several Chinese companies.

Meanwhile, nothing occupies its own niche. The five-year-old company now has 800 to 900 employees and is expected to hit $1 billion in sales this year, Pei said.

Prices for Nothing smartphone models, such as Phone 2 and Phone 3, range from $300 to $700. The phones have a similar structure and design to the iPhone, except for the transparent back panel that reveals some of the internal hardware. In Business Insider magazine Phone 2 reviewAntonio Villas-Boas called the design “striking” with a “surprisingly good camera” and good performance despite the slightly older processor.

Pei doesn't expect Nothing to overtake Apple any time soon. He says pace is important and is thinking about how the two companies can coexist.

He said Nothing is exploring “new form factors” that don't compete with Apple products but can be used alongside them. In addition to phones, the company currently offers watches, headphones and clothing.

Nothing immediately responded to Business Insider's request for comment.