Nothing has announced that its budget-friendly sub-brand CMF will now become a standalone company. The new subsidiary will be based in India and focus on affordable smartphones, earbuds, and wearables.
The move was confirmed by Carl Pei, Founder and CEO of Nothing, on X. He said that the goal is to make CMF into India’s first global consumer tech brand. To make this happen, Nothing has partnered with Optiemus, a local manufacturer, in a joint venture. The company plans to invest over $100 million in the next three years and create at least 1,800 jobs.
Nothing recently raised $200 million in funding, so it already has the resources for this big step.
Spinning off CMF as a separate company makes sense. Nothing has positioned itself as a design-first premium brand, but CMF appeals to a wider audience that wants affordable products. By giving CMF its own identity, Nothing can focus on both markets without blurring its brand image. If executed well, CMF could become a strong competitor to budget-friendly brands like Realme, iQOO, and Poco in India.
The timing of this news is interesting. CMF is already preparing to launch its first over-ear headphones on September 29. Like other CMF products, these headphones will also be budget-friendly. For example, the Phone 2 Pro costs just $279 in the US beta release, while its watches and earbuds are all priced under $100.
