Carl Pei, CEO of the British smartphone company Nothing, has recently expressed his views on the current state of Apple’s innovation and shared his vision for the future of smartphones. Pei, who has been a significant figure in the tech industry, believes that Apple has lost its creative edge and that the future of smartphones lies in a unified operating system that personalizes user experience through artificial intelligence (AI).
Apple’s Declining Creativity
Pei’s admiration for Apple dates back to the era of the first iPod and iPhone, products that inspired him to enter the technology sector. However, he now perceives a shift in the company’s approach. In a recent interview, Pei stated, Personally, I was very inspired by Apple when I was younger—the first iPod, the first iPhone—that’s the reason I’m in this industry. But now the creative companies of the past have become very big and very corporate, and they’re no longer very creative. They’re no longer inspirational for the younger generation.
This sentiment echoes broader industry observations. For instance, Meta CEO Mark Zuckerberg has also criticized Apple for its perceived stagnation, remarking that the company hasn’t really invented anything great in a while and is just kind of sitting on the iPhone 20 years later. ([appleinsider.com](https://appleinsider.com/articles/25/01/10/meta-ceo-mocks-apple-for-sitting-on-iphone-20-years-later-despite-doing-the-same-with-facebook?utm_source=openai))
Critique of Apple Intelligence
Pei specifically pointed out Apple’s recent foray into AI, known as Apple Intelligence, as an example of the company’s waning innovation. He commented, Apple today is very different from the Apple when I was younger. Last year, they told a very big story about Apple Intelligence. Now, a year later, it’s not much more than some generated emojis. So it’s made consumers very skeptical.
This critique aligns with industry analyses that suggest Apple has been slow to integrate AI meaningfully into its products. Reports indicate that Apple’s AI features have not met consumer expectations, leading to skepticism about the company’s ability to innovate in this area. ([ft.com](https://www.ft.com/content/d31a0fdd-072a-4e64-b03f-ae5d90cfc77d?utm_source=openai))
Envisioning a Unified Smartphone Experience
Looking ahead, Pei envisions a radical transformation in smartphone functionality. He predicts a future where the traditional app-based interface is replaced by a single, intelligent operating system that understands and anticipates user needs. Pei elaborated, I believe that in the future, the entire phone will only have one app—and that will be the OS. The OS will know its user well and will be optimized for that person.
This concept involves a system that proactively suggests actions based on the user’s context, such as time, location, and schedule, thereby automating tasks that currently require manual input. Pei acknowledges that this vision is ambitious and may take 7-10 years to materialize fully. He noted, At this point, if we said, ‘We have eliminated apps from smartphones,’ no one would buy it. So we have to ship a little bit, look at the data, look at the feedback, iterate, and then ship again.
Industry Perspectives on Smartphone Innovation
Pei’s views contribute to an ongoing debate about the future of smartphones and the role of major tech companies in driving innovation. Apple CEO Tim Cook has expressed optimism about the iPhone’s future, stating, I think there’s a lot more to come, and I could not feel more optimistic about our product pipeline. So, I think there’s a lot of innovation left on the smartphone. ([macdailynews.com](https://macdailynews.com/2025/01/31/apple-ceo-cook-sees-a-lot-of-innovation-ahead-for-iphone/?utm_source=openai))
However, some industry observers question whether Apple can maintain its innovative edge. Analysts have noted that Apple’s reliance on the iPhone as its primary revenue source may hinder its ability to explore new form factors and technologies. For example, while competitors like Samsung have ventured into foldable devices, Apple has yet to introduce a similar product. ([appleinsider.com](https://appleinsider.com/articles/24/11/04/can-apple-innovate-if-iphone-remains-the-biggest-slice-of-its-revenues?utm_source=openai))
The Role of AI in Future Smartphones
The integration of AI into smartphones is a focal point for many tech companies. Pei’s vision of a unified operating system aligns with broader industry trends toward personalization and automation. AI has the potential to transform user interactions by providing more intuitive and context-aware experiences.
However, the path to such innovation is complex. It requires not only technological advancements but also a shift in user behavior and acceptance. As Pei suggests, gradual implementation and user feedback are crucial in this evolutionary process.
Conclusion
Carl Pei’s critique of Apple’s current state and his vision for the future of smartphones highlight the dynamic nature of the tech industry. While Apple has been a pioneer in the past, voices like Pei’s suggest that continuous innovation is necessary to remain relevant. The concept of a single, AI-driven operating system represents a significant shift from current smartphone paradigms, indicating that the next decade could bring transformative changes to how we interact with our devices.
