Nothing Phone (3) Gears Up for Major US Push with General Availability

Smartphone startup Nothing is poised to make its most significant foray yet into the highly competitive United States market. TechCrunch has exclusively learned that the company's next flagship device, the Nothing Phone (3), will be available for general sale in the U.S. through its official website and Amazon. This represents a pivotal strategic shift for the London-based firm, which has previously approached the U.S. market with more limited availability.

Since its inception in 2020, Nothing has launched eight phones, but only one, the Phone (2), has been offered for general sale in the U.S. Prior to that, early adopters had to navigate a beta program to acquire a device, a process that lacked standard after-sales support, though a 14-day return window was provided.

Carl Pei, Nothing's CEO and co-founder (and previously a co-founder of OnePlus), articulated the significance of this move in an interview with TechCrunch. "We have always said we are building for the long term, and now we’re ready to take that next step in the U.S. Phone (3) is not just another launch. It is a signal of where we are as a company," Pei stated. He acknowledged the entrenched nature of the U.S. smartphone landscape, noting, "The smartphone market in the U.S. is dominated by two players, but a lot of people are hungry for something different."

Pei expressed confidence in Nothing's ability to attract consumers seeking alternatives to the ubiquitous offerings from Apple, Samsung, and Google. "We have already seen strong conversion rates from users switching to Nothing, and with Phone (3), we are going after that opportunity in a much more focused way. This is the right product, and the right moment, to start scaling in North America," he added.

A Strategic Evolution: From Beta to Broad Availability

Nothing's journey in the U.S. market has been one of cautious, iterative steps. The initial Phone (1), while generating considerable buzz globally for its unique transparent design and 'Glyph Interface' LED patterns, was not officially released for general sale in the U.S. Instead, it was offered through a limited beta membership program. This approach allowed Nothing to gauge interest and gather feedback from a dedicated community of early adopters without committing to the significant logistical and carrier certification challenges of a full-scale launch.

The Phone (2) marked the first step towards broader availability, offering general sales in the U.S., albeit primarily through Nothing's own channels. While this was an improvement, the company still faced hurdles, particularly regarding widespread carrier compatibility. The complex ecosystem of U.S. mobile networks, with their varying bands and certification requirements, has historically been a major barrier for international smartphone manufacturers.

With the Phone (3), Nothing appears to have addressed some of these critical infrastructure challenges. The device is confirmed to support AT&T and T-Mobile coverage out of the box, featuring multi-band support for both 4G and 5G networks. This represents a notable enhancement compared to the more limited carrier compatibility of previous models like the Phone (2a), Phone (2a) Plus, and the recently launched CMF Phone 1 (under Nothing's sub-brand).

This improved compatibility is crucial for reaching a wider audience in the U.S., where a significant portion of the market purchases phones directly from carriers or relies on seamless network performance across different providers.

Expanding Reach: Online and Retail Channels

The decision to sell the Phone (3) through both Nothing's website and Amazon is a strategic move to maximize reach within the U.S. market. Online direct-to-consumer sales via the company website allow Nothing to maintain control over the customer experience and potentially offer exclusive bundles or early access. Leveraging Amazon, one of the largest e-commerce platforms globally, provides access to a massive customer base already accustomed to purchasing electronics online, offering convenience and trust.

Beyond the U.S., Nothing is also expanding its retail footprint in North America. In Canada, the company is partnering with Best Buy to sell the Phone (3) and a new audio product, the Headphone (1), through physical retail channels for the first time. This multi-channel approach – online direct, online retail giant, and physical retail partnerships – signals a more mature and aggressive go-to-market strategy for the region.

Positioning the Phone (3): Premium Features and Pricing

While specific details about the Phone (3)'s technical specifications remain under wraps ahead of its early July unveiling in London, Carl Pei has offered some insights into the device's positioning. In a video released in March, Pei indicated that the Phone (3) would feature premium materials, deliver major performance upgrades, and introduce "software that really levels things up."

These comments suggest a focus on refining the core smartphone experience, building upon the foundation laid by the Phone (2). Nothing's software, known for its clean, minimalist interface and unique interactions tied to the Glyph Interface, is expected to receive significant enhancements, potentially incorporating new AI features or deeper integrations with Nothing's growing ecosystem of audio products.

Pei also provided an estimated price point for the Phone (3), suggesting it would be priced around £800 in the UK. This figure could translate to approximately $1,000 in the U.S. market, depending on exchange rates, taxes, and regional pricing strategies. A price tag in this range would place the Nothing Phone (3) squarely in the premium segment, putting it in direct competition with the latest flagship offerings from industry giants, such as the anticipated iPhone 16 Pro and the Samsung Galaxy S25+.

Entering the premium tier is a bold move for Nothing. While it aligns with Pei's vision of offering a high-quality alternative, it also means competing head-to-head with devices that benefit from massive marketing budgets, deep carrier relationships, and years of established brand loyalty in the U.S.

The Uphill Battle: Market Dynamics and Competition

The U.S. smartphone market is notoriously difficult for new entrants to penetrate significantly. It is largely a duopoly, with Apple and Samsung commanding the vast majority of sales. According to research firm Counterpoint Research, Nothing's global shipment numbers for 2024 were in the "low-single-digit millions," with India currently being its largest market. This highlights the scale of the challenge Nothing faces in making a meaningful impact in the U.S.

Maurice Klaehne, a senior research analyst at Counterpoint Research, commented on the U.S. market dynamics. He noted that while companies like Google and Motorola have made some progress in the premium segment, it remains heavily dominated by Samsung and Apple. Klaehne also pointed out that Pei's former company, OnePlus, despite selling unlocked devices in the U.S., still has relatively low shipment volumes compared to the market leaders. This context underscores the significant "uphill climb ahead in the North American market" for Nothing.

Breaking into this market requires more than just a compelling product. It necessitates building strong brand awareness, establishing reliable distribution channels, and, crucially, securing favorable relationships with major U.S. carriers. While Nothing's improved compatibility with AT&T and T-Mobile is a positive step, deep partnerships that include carrier subsidies and prominent placement in retail stores are often key drivers of volume in the U.S.

Nothing's strategy of focusing on design differentiation and a unique user experience is central to its appeal. In a market often criticized for iterative smartphone designs, Nothing's transparent aesthetic and interactive Glyph Interface offer a distinct visual identity. This could resonate with consumers who feel fatigued by the status quo and are actively seeking something different, as Carl Pei suggested.

Funding and Future Ambitions

Nothing has demonstrated its ability to attract significant investment, having raised over $250 million across multiple funding rounds. This financial backing is essential for fueling ambitious expansion plans, particularly in a market as expensive to enter and scale within as the United States. The capital is needed for research and development, manufacturing, marketing campaigns, building out distribution networks, and providing robust customer support.

The success of the Phone (3) launch in the U.S. will be a critical test for Nothing's long-term viability and its ability to evolve from a niche player with a strong design identity into a significant global smartphone brand. A strong performance in the U.S. could unlock further investment, enhance brand perception worldwide, and provide the necessary volume to compete more effectively on scale and cost.

Conversely, a lukewarm reception could force Nothing to re-evaluate its strategy for the region. The company will need to carefully manage expectations, navigate the complexities of the market, and effectively communicate its value proposition to American consumers accustomed to the offerings of Apple and Samsung.

Conclusion: A Defining Moment for Nothing

The upcoming launch of the Nothing Phone (3) for general sale in the U.S. is more than just a product release; it's a strategic declaration of intent. By making its flagship widely available through its own website and Amazon, and by enhancing carrier compatibility, Nothing is signaling its readiness to compete directly in one of the world's most important and challenging smartphone markets. Carl Pei's vision of offering a compelling alternative to the dominant players will face its most significant test yet.

While the path ahead is undoubtedly steep, marked by the entrenched positions of Apple and Samsung and the logistical hurdles of U.S. distribution and carrier relations, Nothing's unique design philosophy and growing brand recognition offer a potential wedge. The Phone (3), with its promised premium features and refined software, is the vehicle for this ambition.

The success of this launch will not only determine Nothing's future trajectory in North America but will also serve as a case study for other international smartphone manufacturers aspiring to challenge the established order in the U.S. market. All eyes will be on Nothing in early July as the Phone (3) is unveiled, marking the beginning of its most ambitious chapter yet.