CMF, the more affordable consumer electronics brand launched by Nothing, is set to take a major step toward becoming an independent company in India. Nothing CEO Carl Pei has announced that CMF will be separated from Nothing, with the new entity expected to have majority Indian ownership and its headquarters, team and research and development operations based in the country.
The move gives CMF greater independence while allowing Nothing to remain a shareholder and strategic partner. More importantly, it signals a shift in how the brand views India—not simply as a manufacturing base, but as a market where products can be designed, engineered and developed.
Credits: ITmatterss
CMF Moves Beyond Being a Nothing Sub-Brand
Nothing launched CMF in 2023 as a more affordable alternative to its main smartphone and electronics lineup. Since then, the brand has expanded beyond smartphones into products such as earbuds and other consumer devices.
The new structure is intended to give CMF greater control over its engineering and product development. While Nothing will continue contributing expertise in areas such as software, engineering and supplier relationships, the Indian company will operate with greater autonomy.
For CMF, that means the brand can build capabilities that go beyond simply adapting existing products for the Indian market. The company wants to develop its own engineering teams, work more closely with suppliers and eventually create products and components specifically around its requirements.
Why India Is Central to Carl Pei’s Plan
Carl Pei’s decision reflects his broader view that India’s electronics industry needs to move beyond manufacturing.
India has developed into an important global smartphone manufacturing hub, with several international companies producing devices locally. However, Pei argues that manufacturing alone cannot create a complete consumer electronics ecosystem.
The next stage, according to his vision, involves greater investment in engineering, research and product development.
That could mean CMF working directly with Indian suppliers to develop components instead of relying heavily on standard, off-the-shelf parts. The company also plans to expand its local engineering capabilities, potentially creating a closer connection between product teams and manufacturers.
CMF Sets Its Sights on 100 Million Smartphones
Perhaps the most ambitious part of Pei’s vision is CMF’s long-term target of producing 100 million smartphones annually.
That figure is far above CMF’s current scale and is not being presented as an immediate production target. Instead, it represents the size Pei believes the business could eventually reach if it successfully develops its product, engineering and supply-chain capabilities.
CMF is also building a broader consumer electronics portfolio. Its lineup already includes wireless earbuds, giving the company opportunities to compete across multiple categories rather than relying entirely on smartphones.
Reaching such a large smartphone volume, however, would require significant expansion in manufacturing capacity, supplier networks, distribution and product development.
CMF Will Not Launch a New Smartphone in 2026
The company’s ambitious long-term plans come at a challenging time for the smartphone industry.
CMF has decided not to launch a new smartphone in 2026, citing supply-chain difficulties and a significant increase in component costs. The pause comes as manufacturers across the industry deal with rising expenses and pressure on their supply networks.
For a newly independent company, controlling these costs will be particularly important. CMF will need to balance its plans for greater product differentiation with the price-sensitive market segment it targets.
The decision also gives the company additional time to establish its independent operations and strengthen its engineering capabilities in India.
Credits: ABP Live English
Carl Pei Points to India’s Changing Smartphone Market
Pei has also highlighted how dramatically India’s smartphone market has changed over the past decade.
According to figures cited by him, domestic brands accounted for around 46% of India’s smartphone market in 2015. Their combined share has since fallen to below 1%.
Pei attributes much of this change to differences in product development and engineering capabilities. International smartphone companies introduced advances in areas such as cameras, hardware integration and industrial design, while Indian brands struggled to maintain the same pace of product development.
His argument is that India’s challenge is therefore not simply about manufacturing more smartphones. It is also about developing the ability to create differentiated products.
