Nothing Plans to Establish CMF as Independent Subsidiary with Operations in India
Strategic Move to Enhance Manufacturing and R&D
On Thursday, hardware startup Nothing announced its intention to transform its affordable tech brand, CMF, into an independent subsidiary, with its operational base located in India. The company aims to leverage the country for both manufacturing and research and development (R&D) activities.
Expansion of the CMF Brand
CMF was initially launched in 2023, introducing a range of products including earbuds and smartwatches, followed by a series of smartphone launches. This latest move underscores Nothing’s commitment to expanding its footprint in the competitive tech landscape.
Joint Venture with Optiemus
To facilitate this transition, Nothing has entered into a partnership with Indian Original Design Manufacturer (ODM) Optiemus to form a joint venture focused on manufacturing capabilities in India. Although the specific ownership structure has not been disclosed, Nothing plans to invest over $100 million in this venture over the next three years, which is expected to create more than 1,800 jobs in the region.
Market Dynamics Favoring India
The decision to establish CMF’s headquarters in India aligns with market trends, particularly given the strong demand for affordable smartphones. According to IDC, smartphones priced under $200 dominate the Indian market, accounting for 42% of shipments in Q2 2025. Furthermore, Nothing has managed to capture over 2% of the Indian smartphone market, marking it as the fastest-growing brand in the country during the same quarter, with an impressive 85% increase in year-over-year shipments.
“India is poised to play a pivotal role in the evolution of the global smartphone market. Since our launch two years ago, CMF has received a positive reception from consumers. Our comprehensive capabilities uniquely position us to build India’s first truly global smartphone brand. The partnership with Optiemus represents a critical step toward realizing this vision,” stated Carl Pei, CEO of Nothing.
Leadership Changes and Brand Strategy
In a related development, Nothing recently appointed Himanshu Tondon, formerly of Xiaomi’s spin-off brand POCO, as the Vice President of Business for CMF. This move reflects a growing trend of brand spin-offs in the tech industry over the past decade, where companies like Xiaomi, Huawei, and Oppo have established separate entities for their budget-friendly product lines.
According to industry expert Navkendar Singh, Associate Vice President at IDC India, “Establishing CMF as a standalone entity aligns with its success in the budget segments of the phone and wearable markets in India. Additionally, this strategy helps Nothing maintain its mid-premium positioning, avoiding any value-for-money association that might detract from its core offerings.”
Conclusion
Nothing’s commitment to expanding CMF as an independent subsidiary in India showcases the company’s forward-thinking approach in the fast-evolving tech sector. By focusing on local manufacturing and leveraging market dynamics, Nothing aims to establish CMF as a prominent name in the global smartphone industry.
