Hyderabad: Nothing is tilting towards the idea of developing its own mobile operating system akin to Google's Android, Apple's iOS, and the recently introduced HarmonyOS Next by Chinese giant Huawei. At TechCrunch Disrupt, Nothing co-founder and CEO Carl Pei talked about the potential of entering the software side of things, highlighting an expanded possibility for innovation.
A new OS could mean a new revenue stream
Criticising the industry's Google-Apple duopoly, Pei said that Nothing is exploring the development of its own operating system, calling it an extension of Nothing's impact on the industry as well as a new revenue stream for the company.
Pei explained that the software side now offers opportunities to influence how people use their devices while noting the "lucrative" financial rewards. Pei added that being a hardware company can be challenging due to issues like supply chain complexity, high capital expenditure, low margins, and the high risk of achieving product-market fit. In contrast, he pointed out that software revenue provides more comfort with higher margins.
The struggles of building an OS
Google and Apple have invested a lot of money, time, and effort to develop and improve their operating systems. While building upon the AOSP is pretty common in the industry, building a new OS from scratch can be a daunting task. Huawei recently bucked the trend of making an Android alternative for smartphones with the release of HarmonyOS Next. The Chinese giant, with its massive resources, found it difficult to make a completely new operating system.
However, Pei believes that the process of building a mobile OS has become significantly easier, thanks to the recent AI boom. He suggested that, when considering the tech stack of an operating system, there is no need to focus on the lower levels, such as drivers, hardware-to-software connections, and the kernel.
He proposed concentrating on innovating the user experience, noting that operating systems have remained largely unchanged for 40 years. Pei said that while computers and smartphones hold vast amounts of user information, they currently do little to utilise this data to enhance the user experience as the level of customisation is lacking on existing platforms.
When asked if Nothing would raise funds to follow through such a project, Pei decline to comment. However, he added that they can work on the project even if there is no funding.
He explained that their focus is on applied AI rather than foundational work. They are not developing capabilities like training large language models or creating text-to-speech technology. He noted that the opportunity for foundational AI has passed, predicting intense competition where only two or three major players will succeed while others may incur losses. However, he cautioned against labelling the OS an AI operating system, stressing that AI is simply a tool.
The adoption game
Notably, the work on an OS does not just end with its development or subsequent improvements through OTA updates. Pushing for the adoption of a new OS is also a battle as you would need your operating system to have all the essential and popular apps and games available on other platforms. Developers also need to come on board and make dedicated applications for the new OS.
With the introduction of Huawei's Android alternative HarmonyOS Next, the company also announced the availability of thousands of applications for the operating system on the dedicated app store, which included popular Chinese e-commerce, payment, and social media platforms. If Nothing has decided to walk the same route as Huawei, it should prepare itself for the challenges ahead.
