Nothing India boss Akis Evangelidis is betting big on offline expansion—can it take on legacy smartphone giants?

Speaking on the sidelines of the launch of the latest Nothing Phone 3a series, Akis Evangelidis, co-founder and India president, points out that the company plans to focus on expanding its offline distribution strategy this year.

“We are going to start branching into offline quite aggressively this year. So, with the Phone 3a, we are going to be in over 10,000 stores. I'm quite sure this will fuel our growth,” says Evangelidis.

He notes that offline retail channels play a key role in building confidence among people who are still discovering the brand.

“We will expand into offline retail because that also goes hand in hand with building trust,” he adds.

Data from the International Data Corporation reveals that smartphone shipments through offline and online channels grew at a similar pace, each increasing by 4% year over year. However, offline channels accounted for 51% of the market share, while online channels held 49%.

Tarun Pathak, research director at Counterpoint Research, says, “For the past couple of quarters, a trend has been emerging in the Indian market—the offline market is growing. The share of offline sales last year actually increased in the Indian smartphone market.”

The reason behind this shift is that consumers are now investing in higher-priced smartphones and prefer in-store retail interactions to familiarise themselves with their potential purchases before making a decision.

“Not just Nothing, but even Realme, Xiaomi, and Motorola—brands that were once considered heavily online-focused—have started diversifying,” says Pathak.

Samsung maintained its lead in the online channel. In the offline segment, Vivo continued to dominate, while OPPO and Xiaomi secured the second and third spots, respectively. This stronghold of legacy players and Chinese OEMs presents a significant challenge for Nothing as it seeks to expand its market presence.

“Diversifying into offline retail is one of the most challenging things. Players like Samsung, Vivo, and OPPO have built their offline presence over nearly a decade. So, if Nothing starts today, it will take time, but it's a step in the right direction. It will require a lot of resources, manpower, and a strong product push because retailers cannot stock 10 or 12 different OEMs—they will be very selective. So, brands need to position themselves carefully. This is an important strategy, but Samsung and Vivo still have an advantage,” Pathak adds.

However, Evangelidis and Nothing don’t seem overly concerned about competitors. Instead, they see maintaining the brand’s freshness and building long-term customer loyalty as their biggest challenge.

“I don't see the competition. The bar is quite low—there hasn’t been much change in the Indian smartphone landscape for quite a while,” says Evangelidis.

He notes that customers realise Chinese competitors lack aspiration and differentiation.

“All Chinese OEMs do things the exact same way. I don't think there is one that stands out more than the others—they’re all very functional and product-led,” he adds.

“We've been able to bring something very unique to the market that has proven to work. So, it’s more about us versus the competition. To some extent, India is a very saturated market. Our biggest competitor is ourselves,” he adds.

In its three years of operation in India, Nothing has secured a modest 1% market share and sold nearly 160 million units. As a result, Evangelidis says the company will initially focus on driving volume growth while maintaining its presence in the mid-premium segment.

“If we have to invest $10, we are probably going to invest $6 in the mid-segment. We also recognise that Gen Z can't afford all of our flagship products, which is why young millennials are more inclined toward eventual flagship purchases,” Evangelidis says.

He highlights that Gen Z remains one of Nothing's largest groups of early adopters, drawn to the brand’s distinctive design and unique user experience.

“Ever since we started, we’ve been organically attracting a more Gen Z audience—just because of the way we've been doing things. The brand approach resonates naturally with Gen Z, as they care deeply about self-expression,” says Evangelidis.

While Evangelidis states that growth-oriented policies will be implemented across the board, the company appears to be prioritising the streamlining of its distribution channels.

“We are going to double down on online; there’s still a lot of room for growth there. We are also expanding our manufacturing capabilities. We are the only brand in the last 10 years to successfully enter this market and ship a large volume of devices. Now, we are just going to accelerate that,” Evangelidis adds.

Now comes the exciting part—what does the all-new Nothing Phone 3a series bring? A stronger focus on the camera and the company’s first step into AI. The new series features a triple-camera setup, marking a significant upgrade. Nothing’s co-founder revealed that over the past year, the company has brought in specialised talent dedicated solely to enhancing its camera technology.

“We also have a better screen, a better front camera, and on the Pro model, a 50-megapixel camera,” says Evangelidis.

Additionally, the Phone 3a series has the brand’s lowest carbon footprint to date. When it comes to AI, however, Nothing is taking a more cautious approach. Evangelidis reveals that the company is focusing only on AI features that are genuinely useful and relevant to users, rather than incorporating AI as a gimmick or a justification for higher prices.

“Phone 3a will mark the first device with our in-house AI software. AI has been used in every single feature of the phone. To be honest, AI has been around for a long time, but it has become a buzzword, creating a lot of confusion,” says Evangelidis.

From a button that helps organise everything—from planning for concerts and events to saving news and reels users forgot to revisit—to an AI-enabled camera designed to improve photo quality, Nothing aims to deliver AI features that are practical and genuinely useful.