Smartphone maker Nothing denies plans to scale back international presence
Following the decision of OnePlus to rationalise international options, smartphone manufacturer Nothing is also said to be preparing for a substantial reorganisation, with operations in Japan, parts of Europe and the Middle East on the line.
Nothing, however, has denied plans to exit any markets, but will be consolidating business units in individual countries into “regional hubs”, which will also result in job losses.
The trigger is said to be disappointing sales figures for its latest devices. The recently released Nothing Phone (4b) is reported to have sold around 20,000 units since it launched earlier this month. The Nothing Phone (4a) series, which appeared at the end of March, is said to stand at around 150,000 units sold worldwide.
Strikingly, Nothing previously reported that sales of the Phone (4a) series were exceeding expectations. If the new figures are accurate, however, demand appears to have dropped sharply after the initial launch.
The company is not performing poorly everywhere. In India, Nothing’s smartphones remain popular and its audio products are also said to be selling steadily. Even so, a withdrawal from several international markets, combined with large-scale lay-offs, would suggest that the company is facing substantial challenges behind the scenes. According to the reports, globally increased prices for RAM and storage chips are playing an important role in this.
“We are not pulling out of markets,” the company states. “Incorrect reports are being circulated. The Phone (4b) alone sold 29,537 units on the first day of sales, setting a sales record within its price segment.
“What we are doing is restructuring our organisation to prepare for the next phase of growth. We are introducing specialised business units, including an AI-focused business unit, and merging individual countries into regional hubs so we can operate much more efficiently.
“These changes have consequences for a number of roles. Due to legal obligations and ongoing local consultation processes, we cannot share specific details. However, the figures mentioned in the media are highly exaggerated.”
Incidentally, OnePlus also denied for a long time that it was withdrawing from certain markets. In the end, the rumours turned out to be correct after all.
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