Nothing Reportedly Pivoting to AI-First Strategy, Deprioritizing Smartphones

London-based consumer electronics brand Nothing is reportedly planning to transition into an AI-first company, shifting its primary focus from smartphones to AI-integrated audio and wearable devices. This strategic pivot, heavily backed by co-founder Carl Pei, is expected to begin its first phase in September. This shift reflects the intensifying competition and shrinking profit margins in the global smartphone market, prompting hardware startups to seek new growth avenues in AI. If successful, Nothing's transition could accelerate the adoption of AI-native consumer hardware beyond traditional smartphones. The transition will start with a lineup of AI-integrated products under both the main Nothing brand and its budget sub-brand CMF, including the CMF Ear Clip Buds, Nothing Headphones Gen 2, Nothing Smartwatch, and CMF Speakers. These upcoming devices will reportedly retain Nothing's signature design language and are scheduled for release between August and September.