Profit is zero: the head of Nothing says the company earns nothing from Phone smartphone sales (1)
The founder of Nothing, aka the former co-founder of OnePlus, Carl Pei, explained the cost of the Nothing Phone smartphone (1).
Here's What It Costs
According to him, Nothing makes money on Phone (1) sales. The cost of the smartphone is $360, and it sells for $450 in stores. Of the remaining $90, the manufacturer has to cover logistics and share a portion with partner channels like Amazon and network carriers. When all these costs are taken into account, the profit on gadget sales is zero.
However, Carl Pei says that this is normal for a startup, and he sees Phone (1) as the ticket to the smartphone market.
Plus, the company is now getting better deals on components, which should help the brand increase (or rather, start making) profits from the next products released.
By comparison, the cost of most Apple smartphones is up to 50% of the final cost. That said, Apple has a lot more expenses than just logistics and margin distribution with partners.
