Carl Pei says Nothing enters phase two, no new flagship smartphone in 2026

London-based technology company Nothing has outlined its plans for 2026, signalling a shift from rapid expansion to a more measured phase of growth. In a newly released video, founder and chief executive Carl Pei detailed the firm’s product roadmap, retail ambitions and organisational changes, while also addressing rising costs across the smartphone industry.

Pei said the company has moved beyond its early build-out stage and is now entering what he described as “phase two”, focused on scaling products, refining operations and maturing as a brand without following conventional industry timelines.

No New Flagship Smartphone Planned for 2026

One of the key announcements was the confirmation that Nothing will not release a new flagship smartphone this year. The Nothing Phone 3 will continue as the company’s top-tier device throughout 2026.

Pei said the company does not believe in launching a flagship every year simply to keep pace with competitors. Instead, Nothing wants to introduce major upgrades only when there is a meaningful improvement for users. This approach, he added, allows the firm to focus on long-term product quality rather than annual refresh cycles.

Nothing Phone 4a to Refresh Mid-Range Portfolio

While a flagship update is off the table, Nothing plans to revamp its mid-range smartphone lineup. Pei confirmed that the Nothing Phone 4a is on the way and will represent a substantial upgrade over the Phone 3a series.

According to the CEO, the upcoming model will see improvements across design, materials, display quality, camera performance and overall speed. He also hinted at more experimental colour options, while maintaining the brand’s distinctive visual identity. The Phone 4a has already surfaced on certification listings, suggesting a launch later this year.

Audio Products to Become a Bigger Focus

Pei also revealed that Nothing will invest further in the over-ear headphone category in 2026. He said the Nothing Headphone 1 exceeded internal expectations, performed strongly in sales and received several industry awards.

As a result, audio products are now viewed as a core growth area for the company. Pei indicated that future development will build on this momentum, though he did not share specific product timelines.

Software Updates and AI-Powered Apps in Development

On the software front, Pei discussed progress on Nothing OS 4.0 and a new initiative called Essential apps. The feature aims to let users create apps and widgets simply by describing what they want, without needing traditional coding skills.

The Essential apps project is currently in alpha testing and is expected to move to beta soon. Initially, the feature will be exclusive to the Nothing Phone 3. Pei described this as part of the company’s broader push to rethink how people interact with software on smartphones.

Smartphone Prices Likely to Rise

Addressing market pressures, Pei warned that smartphone prices are likely to increase due to rising component costs. He said RAM prices have surged as demand grows from artificial intelligence workloads, creating volatility across the electronics supply chain.

Manufacturers, he explained, are increasingly forced to choose between raising prices or reducing specifications. Nothing, he confirmed, is likely to increase smartphone prices, with storage components such as UFS 3.1 also contributing to higher costs. Pei expects memory prices to remain elevated through 2026 and possibly beyond.

Leadership Changes and New London Headquarters

The video also confirmed a senior leadership appointment, with Charlie Smith joining Nothing as its new chief brand officer. Smith previously served as chief marketing officer at luxury electronics brand Loewe.

Pei additionally revealed plans for a new global headquarters in London. The company will move into a building formerly used by Heatherwick Studio, with occupancy expected in the first quarter of 2026. The site will serve as the foundation for a campus-style presence in the King’s Cross area.

Retail Expansion Begins in India

Nothing’s physical retail presence is also set to grow. Pei announced that the company’s second official store will open in Bengaluru on February 14. Further locations are planned for Tokyo and the United States.

He described retail spaces as important environments for expressing the brand, hosting community events and engaging customers, rather than functioning purely as sales outlets.