In keeping with the trend of making a lot of noise about Nothing, it seems appropriate to note that Canadian smartphone fans may have avoided disappointment thanks to Nothing not releasing its upcoming Phone (1) here.
That doesn’t mean Canadians will be better served by fewer choices when it comes to smartphones. I’d say more choice is better, especially in an era where smartphone companies are increasingly disappearing. LG is gone, HTC comes out with a new rogue crypto phone every few years, and Motorola only seems to release a few budget or mid-range options every year in Canada.
Until Nothing revealed its first new smartphone, the Phone (1), wasn’t coming to Canada, I was eagerly awaiting its arrival. Admittedly, I probably got a little lost in the hype. The phone is exciting — it has a unique look and is new and shiny.
But as we’ve learned more about the Nothing Phone (1), I’ve found myself thinking that maybe it’s a good thing that the first iteration will skip Canada.
Flagship hype for the stylish middle class man
Image credit: MKBHD
Most recently, Nothing confirmed that the phone (1) is powered by a “custom-tuned” Snapdragon 778G+ chip. As previously reported, the 778G+ is actually just a 778G with wireless charging capabilities. The thing is, the 778G (and by extension the 778G+) is a mid-range chip. There’s nothing wrong with mid-range chips, but Nothing’s hype machine painted the Phone (1) as a flagship. People who come to Phone (1) with this expectation may find themselves disappointed.
The thing is, Nothing’s Phone (1) will have to contend with some of the biggest players in the market to make any headway. That’s a big challenge and a market like Canada’s makes it even harder to overcome.
The smartphone market in Canada is not large, at least compared to some other countries. According to StatsCan, about 85 percent of Canadians had a smartphone for personal use in 2020. The latest population estimates (also from StatsCan) put Canada at about 38.6 million, which means roughly 32.8 million Canadians have smartphones. Emphasis on “approximately” because 85 percent comes from 2020 and the numbers have likely changed since then. Combined with data from 2019 that suggests Canada has an almost equal split between Android and iOS usage (46 to 53 percent respectively, but I’m rounding here to make the math a little easier) and you have maybe 16, 4 million potential customers for the phone (1).
And since I can already hear the furious typing coming from the comments section, I want to admit that this is just some quick math from the back of the napkin. It’s not so much about the numbers as it is that Canada is a small market in the grand scheme of things (Apple and Samsung have sold about 239 million and 272 million smartphones respectively in 2021).
Obviously, Nothing won’t move that many Phone (1) units, nor should anyone expect it to with their first phone. Instead, if Nothing launches the Phone (1) in Canada, it will sign up to fight for a slice of an already small market, and it will do so with almost no backup (read: carriers).
We’ve been here before
Sound familiar? That’s because we’ve seen this before from brands like OnePlus and Essential. You still can’t buy OnePlus phones from Canadian carriers, while Essential’s PH-1 was only available through Telus at launch. Yes, OnePlus has achieved significant success, but you’d be hard-pressed to find anyone outside of tech circles familiar with the brand.
Anecdotally, I used to work at a smartphone store before I started writing for MobileSyrup. Almost every customer I had was there to buy a new iPhone or a new Samsung Galaxy, usually because their current iPhone or Samsung phone was broken or old. It was rare for a customer to show interest in a phone from another brand (I did have the occasional Pixel convert though). The Essential Phone was available at the store I also worked at, but I don’t recall ever selling it, even after it was heavily discounted at the end of its release.
Although I never owned an Essential Phone, I loved the device and always thought it was truly unique. It was disappointing to see the phone come to Canada and languish in obscurity. It’s also worth noting that nothing took out what was left of Essential last year.
You need more than hardware tricks
So breaking into the Canadian smartphone market is tough. You don’t need operators to do it, but even having them might not help. Also, to get people to switch, you really need something to attract them. Hardware tricks won’t help you (as cool as those LED glyphs are). If I had to guess, the secret might be OnePlus’ anti-flagship tactic — the company has garnered a lot of press by offering flagship smartphones at low prices. This got people’s attention and was enough to push some of the carrier’s upgrade pipeline away.
Nothing’s Phone (1) is gone. Rumor has it that the price is low, but that’s because it’s a mid-range device, not a flagship. Unfortunately, high-quality mid-range devices do exist in Canada from well-known brands—for example, Apple’s iPhone SE, Google’s Pixel A-Series, and Samsung’s Galaxy A line. In addition, they all have the advantage of being offered by Canadian carriers.
With all that said, I think Nothing’s plan to skip Canada and the US is the right play. Sure, it sucks for smartphone fans, but it also gives Nothing a chance to prove itself in less cutthroat markets. Perhaps with some success attached to his name, nothing could break through in Canada. Either way, the Canadians avoid disappointment.
Image Credit: Nothing
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