Why Carl Pei Left OnePlus To Start 'Nothing'

Summary

The speaker shares their journey from university dropout to key player in the tech industry. Starting with Mizu, they moved to Hong Kong in 2011 and later joined OPPO, witnessing the rise of Xiaomi. After launching OnePlus and contributing to its international success, the speaker transitioned to founding their own company, Nothing. They discuss the challenges of carving a niche in a saturated market, emphasizing design and gradual innovation in hardware, software, and AI. Through perseverance and a focus on differentiation, they continue to navigate the difficulties of building a successful brand.

Takeaways

• 😀 The speaker was initially planning to apply for YC but got distracted by playing League of Legends and didn't finish the application.
• 😀 The CEO of Mazu contacted the speaker to help the company become more international, offering a chance to work in Hong Kong, which led to the speaker leaving university in 2011.
• 😀 Mazu was a Chinese smartphone company, and the speaker became involved because of their fan community for Mizu products, which gained 70,000 members.
• 😀 The speaker had a brief internship at Nokia before joining Mazu but left after realizing it was a family-run business, making it difficult to grow the company.
• 😀 The speaker applied to companies like Xiaomi, OPPO, and Smartisen but felt intimidated by Xiaomi's aggressive and results-oriented culture.
• 😀 OPPO started OnePlus to compete against Xiaomi's online sales model, and the speaker was given the opportunity to run OnePlus' international operations at just 24 years old.
• 😀 OnePlus' international operations outperformed China, with $200 million in revenue internationally compared to China's $100 million, leading the company to focus more on international growth.
• 😀 The speaker was more focused on marketing and business/marketing from a young age, having made websites and sold advertising to make money.
• 😀 After seven years at OnePlus, the speaker wanted to move away from implementing others' technology and pursue opportunities to impact how people use technology.
• 😀 In 2020, the speaker founded the company Nothing, focusing on creating differentiated hardware and software, especially through unique design, with the goal of carving out a niche in the crowded tech market.

Q & A

What motivated the speaker to join Mizu in 2011?

The speaker was motivated by both the opportunity to be a part of a new and exciting venture and personal laziness to avoid finishing their university thesis and YC application.

What was Mizu's significance in the Chinese smartphone industry at the time?

Mizu was considered the 'Apple of China' at that time, being the first company to launch a Chinese smartphone, and had previously made successful MP3 players.

How did the speaker's fan community play a role in their joining Mizu?

The speaker had created an online fan community for Mizu’s products, which grew to 70,000 members. The CEO of Mizu reached out to the speaker after seeing the community's success.

What was the main reason the speaker left Mizu after a year?

The speaker left because they realized Mizu was a family-run business, which made it difficult for non-family members, like the professional CEO, to effectively run the company.

Why did the speaker prefer OPPO over Xiaomi during the job application process?

The speaker felt that Xiaomi’s aggressive, results-oriented culture was intimidating, while OPPO seemed to have a more traditional manufacturing culture, which the speaker believed would offer them a better opportunity to shine.

How did OPPO respond to the rise of Xiaomi in the smartphone market?

OPPO created a new brand, OnePlus, to compete with Xiaomi, leveraging OPPO's existing supply chain advantages while Xiaomi was still building theirs.

How did the speaker end up running OnePlus’ international operations?

The speaker, despite being only 24, made the case that launching OnePlus internationally was beneficial, offering free revenue streams without competing in the Chinese market. This led to them being given the opportunity to run OnePlus’ international operations.

What were the financial results for OnePlus after its first year of international sales?

After launching the product, OnePlus made $100 million in revenue from China and $200 million internationally, with international sales being profitable while China faced losses.

What drove the speaker to leave OnePlus in 2020 and start a new company?

After spending seven years at OnePlus, the speaker felt that they had done enough in the CPG (consumer packaged goods) model and wanted to impact how people use technology, which led to the decision to start the company Nothing.

What is the core strategy behind Nothing as a company?

Nothing's core strategy is to differentiate itself through unique hardware and software design, rather than attempting to reinvent the product category. The company focuses on carving out a niche in a mature industry by appealing to a smaller group of passionate consumers.