Nothing CEO Carl Pei on Thursday outlined the UK-based firm's plans for 2026, detailing its approach to product development and retail growth.
The discussion also confirmed leadership reshuffles and long-term infrastructure investments. Pei acknowledged intensifying pricing challenges and said the company has completed its early building phase, marking the start of what he described as a second phase aimed at refining operations and expanding its product base.
Pei said that Nothing has no plans to introduce a new flagship smartphone in 2026, meaning the Phone 3 will continue as the company's top-tier device for the year. He added that the firm does not intend to follow an annual flagship cycle, arguing that upgrades should be driven by substance rather than industry tradition.
“We're not just going to churn out a new flagship every year for the sake of it; we want every upgrade to feel significant," Pei said. "Just because the rest of the industry does things a certain way, it doesn't mean we will do the same.”
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While a new flagship is off the table, Nothing is preparing a refresh of its mid-range portfolio with the upcoming Phone 4a, which has already surfaced on certification databases. Pei said the device will represent a comprehensive step up from the Phone 3a range, bringing upgrades across design, build materials, display, camera capabilities and overall performance, alongside more adventurous colour options that reflect the brand's identity.
"The (4a) will be a complete evolution over its predecessor across the board from display to camera to overall performance," Pei said.
Pei also said the company plans to place greater emphasis on over-ear headphones in 2026, following stronger-than-anticipated performance from the Nothing Headphone 1. He added that the product's multiple industry awards have reinforced audio as a central pillar of the company's future growth.
Turning to software, Pei pointed to ongoing developments around Nothing OS 4.0 and the company's work on its Essential apps initiative. He said the tools are designed to let users build custom apps and widgets through simple descriptions, removing the need for conventional coding.
The Essential apps are currently in alpha testing, are expected to enter beta shortly, and will initially be available only on the Phone 3.
Pei also pointed to escalating component costs, saying surging demand for AI has pushed up RAM prices and introduced greater volatility across smartphones and consumer electronics. He said manufacturers are being forced to choose between higher retail prices or reduced specifications, adding that Nothing is likely to raise handset prices. Additional pressure from UFS 3.1 storage costs, he said, is expected to keep prices elevated into 2026 and beyond.
The company's video update outlined plans for a new London-based global headquarters, set within a former Heatherwick Studio building. Nothing expects to move into the premises in the first quarter of 2026, with Pei saying the site will serve as the cornerstone of a campus-style footprint near King's Cross.
Pei said Nothing will open its second physical retail outlet in Bengaluru on Feb. 14, marking another step in the company's offline expansion. He added that further stores are planned for Tokyo and the United States, describing retail spaces as venues for brand expression and community events rather than simply points of sale.
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