London-based tech startup Nothing has announced a significant strategic shift by spinning off its affordable sub-brand, CMF, into a separate entity.
This move, revealed on September 24, 2025, will see CMF establish its headquarters in India, a market known for its massive demand for budget-friendly tech products.
Why Spin Off CMF? A Focus on Affordable Innovation
The decision to separate CMF from Nothing’s core operations is aimed at allowing the sub-brand to focus on delivering innovative yet affordable devices to a broader audience.
Since its inception in 2023, CMF by Nothing has targeted the budget segment with products like earbuds, smartwatches, and the popular CMF Phone 1, launched in July 2024.
Historical Context: Nothing’s Rapid Rise in Tech
Founded in 2020 by Carl Pei, Nothing has quickly risen to prominence with its unique transparent design ethos and premium devices, surpassing $1 billion in lifetime sales by 2024.
The introduction of CMF as a sub-brand was a calculated step to tap into the price-sensitive market without diluting Nothing’s premium positioning.
Impact on the Market and Indian Tech Ecosystem
By basing CMF in India, Nothing is positioning the brand to leverage the country’s growing tech manufacturing capabilities and its status as the world’s second-largest smartphone market.
This move also includes a $100 million joint venture with Indian electronics major Optiemus Infracom to establish India as a global production and export hub for both Nothing and CMF products.
Future Prospects: What’s Next for CMF?
Looking ahead, CMF is expected to expand its product lineup, with upcoming launches like the CMF Headphone Pro teased for September 29, 2025, in India.
Analysts predict that an independent CMF could accelerate innovation in the budget segment, potentially challenging established players like Xiaomi and Realme in markets across Asia and beyond.
Meanwhile, Nothing will likely continue to focus on mid-range and premium offerings, such as the recently introduced Phone (3a) and Phone (3a) Pro, ensuring a clear distinction between the two brands.
As both entities carve out their respective niches, this strategic separation could redefine how tech startups balance premium branding with mass-market appeal in the competitive smartphone industry.
Maria Lourdes
