Nothing has confirmed it will unveil its first entry-level smartphone, the Phone (3a) Lite, this week, but the announcement lands amid controversy over the company’s new software direction.

The phone, launching October 29 at 11 pm AEDT, will sit below the mid-range Phone (3a) and Phone (3a) Pro in the lineup.

It keeps the brand’s distinctive transparent design and a single Glyph LED on the rear.

However, the budget debut is being overshadowed by a user backlash over new software changes in Nothing OS 4.0, now in beta testing.

The update introduces a lock-screen feature called Lock Glimpse, which displays rotating wallpapers and “timely updates”, but early testers report it also serves sponsored content and ads.

While the feature is currently opt-in, Nothing has acknowledged it plans to roll out Lock Glimpse and selected pre-installed third-party apps on “non-flagship” devices to help offset hardware costs.

The company insists partner apps will be “carefully considered”, removable and designed to complement the minimalist Nothing OS experience.

But fans aren’t convinced.

Nothing Phone (3a)

Nothing built its reputation on clean software and a bloat-free approach, making the introduction of potential ads and pre-loads feel at odds with its founding philosophy.

Founder Carl Pei previously criticised rival brands for shipping “bloated” devices – a stance that makes this U-turn particularly notable.

The device is expected to feature a MediaTek Dimensity 7300 chipset, 8 GB of RAM and 128 GB of storage, with pricing tipped to start around €249 (A$405). Black and white models are expected at launch, with global availability confirmed.

It’s not yet clear whether the new features will appear on the Phone (3a) Lite at launch, but the timing suggests they could.