Smartphone maker Nothing to spin off its affordable CMF brand

Hardware startup Nothing has announced its exciting plans to transform its budget-friendly device brand, CMF, into a distinct subsidiary, with its operations centered in India for both manufacturing and research and development. Initially unveiled in 2023, CMF debuted with a pair of earbuds and a smartwatch, later expanding to include smartphones. In a strategic move, Nothing will collaborate with the Indian Original Design Manufacturer (ODM) Optiemus to establish a joint venture for production. While the company has not disclosed the specifics of the ownership structure, it has committed to investing over $100 million in the venture over the next three years, which is expected to create more than 1,800 jobs in the region. The choice of India as the operational base for CMF aligns with market trends, as the brand's smartphones are priced below $200—an attractive range in the Indian market, where over 42% of smartphones shipped in Q2 2025 fell within the $100-$200 category, according to IDC. India has proven to be Nothing's most successful market, boasting over 2% of the smartphone share. IDC has also reported that Nothing emerged as the fastest-growing brand in the country during Q2 2025, with an impressive 85% increase in year-over-year shipments. “India will play a key role in shaping the future of the global smartphone industry. CMF has been well-received by the market since its launch 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 significant milestone toward making that vision a reality,” stated Carl Pei, CEO of Nothing. This strategic move follows the recent recruitment of Himanshu Tondon from POCO, a Xiaomi spin-off, who has taken on the role of VP of Business for CMF. The trend of brand spin-offs has gained momentum in recent years, particularly among Chinese companies, with notable examples including Xiaomi’s POCO, Huawei’s Honor, and Oppo’s Realme becoming independent entities.