Smartphone Maker Nothing To Spin Off Its Affordable CMF Brand
Smartphone maker Nothing to spin off its affordable CMF brand into an independent company, with India becoming the heart of its operations. The move signals a big shift for the London-based startup as it doubles down on the fast-growing budget smartphone segment.
Image Credits:Nothing
CMF Becomes An Independent Subsidiary
Nothing officially announced that CMF, its affordable device brand launched in 2023, will now operate as a standalone subsidiary. The brand started with budget-friendly earbuds and a smartwatch, later expanding into smartphones. By carving out CMF, Nothing is betting on affordability and scale in a market that thrives on competitive pricing.
Why India Is The New Hub For CMF
The newly spun-off CMF brand will be headquartered in India for both manufacturing and R&D. Nothing is partnering with Indian ODM Optiemus through a joint venture, with plans to invest more than $100 million over the next three years. This expansion is expected to create over 1,800 jobs in the region.
India’s dominance in the sub-$200 smartphone market makes this a strategic choice. According to IDC, 42% of phones shipped in Q2 2025 were priced between $100–$200, the exact category where CMF competes.
Funding And Growth Strategy
Nothing, fresh off its $200 million funding round led by Tiger Global, has not disclosed how much of that capital will flow into the CMF venture. However, the company’s commitment to large-scale investment shows its ambition to position CMF as a global player.
India already represents Nothing’s strongest market. In Q2 2025, the company held more than 2% smartphone market share and recorded 85% year-over-year shipment growth, making it the fastest-growing brand in the country.
Carl Pei’s Vision For CMF
Nothing CEO Carl Pei emphasized the strategic importance of India in a statement:
“India will play a key role in shaping the future of the global smartphone industry. CMF has been well-received since we launched it two years ago. With our end-to-end capabilities, we are uniquely positioned to build it into India’s first truly global smartphone brand. Our joint venture with Optiemus is a key milestone toward making that vision a reality.”
What This Means For The Smartphone Market
By spinning off CMF, Nothing isn’t just creating an affordable sub-brand—it’s signaling its intention to compete head-on in the world’s most price-sensitive markets. With India as the base, CMF could quickly expand to other regions where sub-$200 devices dominate.
This move also highlights how smartphone makers are increasingly localizing manufacturing and R&D to scale faster, reduce costs, and meet regional demands.
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