Smartphone maker Nothing spins off CMF budget brand
Hardware startup Nothing announced Thursday that it will transform its affordable device brand, CMF, into a fully independent subsidiary, with India serving as its headquarters for manufacturing and R&D.
Launched in 2023 with earbuds and a smartwatch, CMF has since expanded into smartphones—targeting the budget-friendly segment. Nothing now plans to scale CMF aggressively, investing over $100 million across the next three years while creating 1,800+ jobs in India.
A Joint Venture With Optiemus
To fuel the expansion, Nothing is partnering with Indian Original Design Manufacturer Optiemus, forming a joint venture for local manufacturing. While the ownership structure remains undisclosed, the collaboration signals a deeper commitment to India as both a production hub and a growth market.
“India will play a key role in shaping the future of the global smartphone industry,” said Carl Pei, CEO of Nothing. “With our end-to-end capabilities, we are uniquely positioned to now build [CMF] into India’s first truly global smartphone brand. Our joint venture with Optiemus is a key milestone toward making that vision a reality.”
Why India?
The choice of India is strategic. According to IDC, more than 42% of phones shipped in Q2 2025 were in the $100–$200 range—the exact price bracket CMF occupies, with smartphones priced under $200. India is also Nothing’s strongest market, accounting for over 2% market share in smartphones. Notably, IDC reported that Nothing was the fastest-growing smartphone brand in India in Q2 2025, recording 85% year-over-year growth in shipments.
Competitive Positioning
By spinning off CMF, Nothing mirrors a playbook seen across the smartphone industry. Chinese brands such as Xiaomi (POCO), Huawei (Honor), and Oppo (Realme) have all separated sub-brands to target specific market segments.
IDC’s Navkendar Singh sees the logic:
“This move makes sense since CMF has found a market in the budget segments in both phones and wearables markets in India. Another driver could be that Nothing wants to avoid having a value-for-money rub off on itself coming from CMF, especially as Nothing seems to be focused on the mid-premium end of the market [$400–$600].”
Strengthening the Team
The push also comes on the heels of a major talent hire: Himanshu Tondon, former head of Xiaomi spin-off POCO in India, joined Nothing last month as VP of Business for CMF.
With investment flowing, leadership strengthening, and India cemented as its operational center, Nothing is positioning CMF not just as a low-cost sub-brand but as a potential global contender in the budget smartphone space.
