Nothing’s next big bet reportedly puts smartphones on the back burner

TL;DR Nothing is reportedly shifting to an AI-first strategy, with wearables and audio products taking priority over smartphones in a phased rollout expected to begin later this year. The rumored first wave includes AI-powered earbuds, speakers, headphones, and a smartwatch, while retaining Nothing’s signature transparent design language. The report remains unconfirmed, but if accurate, it could mark Nothing’s biggest strategic shift yet.

Over the past several months, AI has reshaped the smartphone industry in ways most of us didn’t expect. Memory prices have increased , manufacturers are paying more for powerful chips, and those costs are gradually making their way to consumers. Nothing’s co-founder, Carl Pei, recently acknowledged those challenges, and we also saw Nothing cancel its highly anticipated CMF budget smartphone , a reminder that today’s AI-driven hardware costs are reshaping product plans across the industry.

Now, it looks like those weren’t isolated decisions. An exclusive report by Smartprix claims Nothing is preparing for what could be its biggest strategic shift since the company launched. Citing a trusted industry source with a solid track record, the report says Nothing is repositioning itself as an AI-first company, with its next wave of products focused on AI-powered accessories and wearables.

The transition reportedly won’t happen all at once, though. Instead, it’s expected to roll out in phases, with the first products potentially arriving around August or September.