Nothing Launches CMF as Independent Subsidiary, Focusing on Indian Market
In a significant strategic move, the London-based hardware startup Nothing announced on Thursday its plans to establish its affordable device brand, CMF, as an independent subsidiary. This new venture will be headquartered in India, a decision that underscores the country’s growing importance in the global smartphone market.
A New Chapter for CMF
CMF, which stands for “Color, Material, Finish,” was initially launched in 2023 with a focus on budget-friendly technology, including earbuds and smartwatches. Since its inception, the brand has expanded its offerings to include smartphones, positioning itself in a competitive market segment. The decision to spin off CMF into a standalone entity reflects Nothing’s ambition to carve out a niche in the affordable tech space, particularly in emerging markets.
Strategic Partnership with Optiemus
To facilitate this transition, Nothing has partnered with Indian Original Design Manufacturer (ODM) Optiemus to create a joint venture aimed at manufacturing CMF products. While the specifics of the ownership structure remain undisclosed, the company has committed to investing over $100 million in this venture over the next three years. This investment is expected to generate more than 1,800 jobs, contributing to local economic growth.
India: A Key Market
India has emerged as a focal point for Nothing, particularly given the country’s smartphone market dynamics. According to International Data Corporation (IDC), over 42% of smartphones shipped in the second quarter of 2025 fell within the $100-$200 price range, which aligns perfectly with CMF’s pricing strategy. This segment is not only the most popular but also represents a significant opportunity for growth.
Nothing has already established a foothold in India, boasting a market share of over 2% in the smartphone sector. IDC reported that Nothing was the fastest-growing smartphone brand in the country during the same quarter, achieving an impressive 85% year-over-year growth in shipments. This momentum highlights the brand’s potential to thrive in a market that is increasingly competitive.
Vision for the Future
Carl Pei, CEO of Nothing, emphasized the strategic importance of India in shaping the future of the global smartphone industry. “India will play a key role in shaping the future of the global smartphone industry. CMF has been well-received by the market since we launched it two years ago. With our end-to-end capabilities, we are uniquely positioned to now build it into India’s first truly global smartphone brand,” Pei stated. The partnership with Optiemus is seen as a crucial step toward realizing this vision.
Leadership Changes and Market Trends
The announcement comes on the heels of Nothing’s recent hiring of Himanshu Tondon, formerly of Xiaomi’s spin-off brand POCO, as the Vice President of Business for CMF. This move is indicative of Nothing’s commitment to strengthening its leadership team as it embarks on this new journey.
The trend of brand spin-offs has gained traction in the tech industry over the past decade, particularly among Chinese companies. Notable examples include Xiaomi’s creation of POCO, Huawei’s divestiture of Honor, and Oppo’s establishment of Realme as a separate entity. These spin-offs often allow companies to target specific market segments more effectively, a strategy that Nothing appears to be adopting with CMF.
Market Insights
Industry experts have noted that CMF’s focus on budget-friendly devices aligns well with current market demands. Navkendar Singh, Associate Vice President at IDC India, remarked, “This move makes sense since CMF has found a market in the budget segments in both phones and wearables markets in India.” He also suggested that Nothing may be looking to differentiate itself from CMF to maintain its brand identity, which is more focused on the mid-premium segment priced between $400 and $600.
Conclusion
Nothing’s decision to spin off CMF as an independent subsidiary marks a pivotal moment for the company and the Indian smartphone market. With a substantial investment planned and a strategic partnership with Optiemus, the brand is poised to capitalize on the growing demand for affordable technology in India. As the smartphone landscape continues to evolve, CMF’s success could serve as a blueprint for other tech companies looking to penetrate emerging markets. The coming years will be crucial in determining whether CMF can establish itself as a leading player in the budget segment, not just in India but on a global scale.
