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

Stephen Radochia / Android AuthorityTL;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.Ryan Haines / Android AuthorityIf the report is accurate, this marks a pretty significant change in direction. Nothing built its reputation by making smartphones feel interesting again, with its transparent design and Glyph interface helping it stand out in a sea of lookalike devices. But instead of doubling down on phones, the company is reportedly betting that AI-powered devices will be its next big growth opportunity.The first phase could include products like the CMF Ear Clip Buds, CMF speakers, Nothing Headphones (Gen 2), and even a Nothing smartwatch. As you’d expect, the company’s signature transparent aesthetic is also said to carry over to these new products.Ryan Haines / Android AuthorityFor consumers, this is where things start getting interesting. AI arguably makes more sense on devices you wear every day. After all, your earbuds, headphones, or smartwatch are already with you through your commute, workouts, meetings, and phone calls, making them a much more natural place for intelligent features to help throughout the day.That said, nothing is official just yet. This information comes from unnamed industry sources, and plans can always change before launch. We’ve also reached out to Nothing for comment and will update this story if we hear back. Until then, it’s worth taking this report with a healthy dose of skepticism. Still, if it turns out to be accurate, the next chapter for Nothing may be about building an AI ecosystem rather than simply releasing another smartphone.Thank you for being part of our community. Read our Comment Policy before posting.