00:00

APPEALS TO THE MASSES. JOINING US IS NICCOLO DE MASI. I NEED A LITTLE MORE THAN THE IT FACTOR. WHAT MAKES YOU THINK YOU CAN TAKE ON APPLE AND SAMSUNG IN A MARKET WHERE GROWTH IS SLOWING? NICCOLO: PREMIUM MATERIALS, CRAFTSMANSHIP, AND PASSION IS WHAT WE ARE BRINGING BACK TO THIS SPACE. EMILY: YOU DON'T THINK APPLE HAS THAT? >> I THINK THERE HAS BEEN A LITTLE BIT OF INCREMENTALISM IN THE LAST FEW YEARS. I THINK THERE'S BEEN A LITTLE BIT OF BOREDOM SETTING IN. YOUR GRANDPARENTS HAVE THE SAME DEVICES AS YOUR GRANDKIDS. WE HAVE A VERY DISTINCTIVE DEVICE, OBVIOUSLY. IT'S GOT THE FIRST CERAMIC TITANIUM AND CLOSER HERE WE HAVE THE BIGGEST SCREEN AND THE FOLLOWERS -- CERAMIC TITANIUM ENCLOSURE. WE HAVE THE BIGGEST SCREEN. WHAT I THINK WILL HAPPEN WITH OUR DEVICE IS IT'S GOING TO EVOLVE WITH YOU. IT'S GOING TO ALLOW YOU TO MAKE YOUR PHONE MEANINGFULLY MORE POWERFUL OVERTIME -- OVER TIME. WE WILL FOCUS ON ONLY WHAT IS SIGNIFICANT INNOVATION AND ONLY SIGNIFICANT ACCESSORIES. THIS DEVICE, FOR EXAMPLE, WE ARE SELLING FOR $49.99. IT WILL NOT ONLY DEMOCRATIZE 360 VIDEO ACCESS, BUT IT IS SOMETHING YOU CAN AFFORDABLY BRING WITH YOU AT ALL TIMES AND CAPTURE ANY IMPORTANT MOMENT, WHETHER IT IS A SPORTING EVENT, MUSICAL EVENT, YOUR KID'S FIRST STEPS. EMILY: LET'S START WITH THE HARDWARE. WHAT ARE SOME CUSTOM COMPONENTS OF THE PHONE? NICCOLO: IT'S ENCLOSURE MATERIALS. WE ARE THE ONLY PREMIUM PRODUCT USING PREMIUM MATERIALS. WE ARE NOT MARKING UP OUR BUILDING MATERIALS BY A FACTOR OF THREE. WE THINK WE NEED TO BE A PRO CONSUMER BRAND THAT OFFERS ARE MATERIALS AND OUR PHONE AND ALL OUR DEVICES AT A GREAT VALUE PROPOSITION. OUR FULL DISPLAY IS THE FIRST ROUNDED SCREEN. WE HAVE A CAMERA NOTCHED THROUGH THE MIDDLE OF IT. YOU CAN THINK ABOUT WHAT WE ARE DOING IN THE LONG TERM OF THIS DEVICE BY LOOKING AT THE BACK. WE ARE USING A FINGERPRINT SENSOR ON THE BACK. WE HAVE AN INTERNAL CAMERA THAT HAS A BLACK AND WHITE FUSION COLOR SYSTEM. OUR NEXT DEVICE WILL ACTUALLY SWALLOW ALL THE EDGES UP. WE ARE ALMOST DOUBLE -- BEVE LLESS AT THE MOMENT BECAUSE OF THE TITANIUM. FRANKLY, IT'S DISTINCTIVE. WE ARE BRINGING BACK THE COOL FACTOR. EMILY: WHAT SORT OF KOFFLER -- SOFTWARE CUSTOMIZATIONS ARE THERE ON TOP OF THE ANDROID-BASED? -- BASE? NICCOLO: ANDY'S OPERATING SYSTEM HAS BEEN AROUND FOR A WHILE. CITY 5% OF THE MARKET.