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Smartphone maker Nothing to spin off its affordable CMF brand
Hardware startup Nothing will spin off its affordable brand CMF into an independent subsidiary, headquartered in India. This move includes a partnership with ODM Optiemus and an investment of over $100 million over three years, aiming to create 1,800 jobs. CMF smartphones have gained popularity in India, where they cater to the dominant $100-$200 price range.
Key points
- Nothing announced CMF will become an independent subsidiary, based in India for manufacturing and R&D.
- CMF was launched in 2023 with products like earbuds, a smartwatch, and smartphones.
- Partnership formed with Indian ODM Optiemus for manufacturing; ownership structure was not disclosed.
- Investment of more than $100 million over three years aimed at creating over 1,800 jobs.
- India is a key market for CMF; over 42% of phones shipped priced in the $100-$200 range.
- Nothing is the fastest-growing smartphone brand in India, with an 85% growth in Q2 2025.
- Himanshu Tondon was recruited from Xiaomi's POCO for the CMF VP position.
- The spin-off aligns with a trend of major brands separating affordable lines into independent entities.
Why it matters
- Similar brand spin-offs have occurred, such as POCO from Xiaomi, Honor from Huawei, and Realme from Oppo.
- The move correlates with the growing importance of budget smartphones in emerging markets.
- Industry trend analysis shows affordable smartphones' significant market share, particularly in developing regions like India.
Nothing's decision to spin off CMF marks a strategic move to strengthen its presence in the burgeoning Indian smartphone market, reflecting ongoing trends in brand specialization and market responsiveness.