Why Apple’s biggest iPhone partner refused to make Nothing Phone (1)


One of Apple’s biggest manufacturing partners is the Taiwan-based Foxconn group. Foxconn has been a key player for Apple in producing iPhones for many years now. Carl Pei, CEO, Nothing has revealed that Foxconn actually refused to make the Phone (1) — the company’s first smartphone.
In an interview with CNBC, Pei touched upon many subjects, including the challenge of bringing the Phone (1) to the market. Pei said that Nothing went to Foxconn to manufacture its first smartphone.
‘Nothing’ doing: Foxconn’s response
Pei said that almost every startup manufacturer in the past has worked with Foxconn but when Nothing went to them the manufacturing company refused. “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,” said Pei. Foxconn, as we mentioned, remains a key partner for Apple’s manufacturing.
Pei also mentioned that he is concerned about the challenges Android phones could face in beating Apple. The Nothing CEO said that there are certain features iOS gives which are a big hit with Gen Z. “They have very strong lock-in with iMessage, with AirDrop, especially among Gen Z. So that’s a rising concern for me,” he said in the interview.
Pei feels that Apple could end up having as much as 80% of the market share. “There might be a time where Apple is like 80% of the overall market and that just does not leave enough space for Android-based manufacturers to keep playing,” he said.
He also explained why Nothing refrained from launching the Phone (1) in the US. “The reason why we didn’t launch in the US is that you need a lot of additional technical support, to support all the carriers and their unique customisations that they need to make on top of Android,” he told CNBC.



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