Nothing Spins Off CMF as Independent Company in India to Target Global Budget Market

A $100 million joint venture with Optiemus Electronics aims to boost local manufacturing and create 1,800 jobs, replicating a proven industry strategy.
LONDON/NEW DELHI – UK-based Nothing has announced a major strategic pivot, spinning off its budget-focused sub-brand, CMF, into a standalone subsidiary headquartered in India. The move is designed to establish CMF as a global brand focused on affordability and design-led technology, allowing it to compete aggressively in the high-volume budget segment.
The new entity is being formed as a joint venture with Indian manufacturer Optiemus Electronics. The partners plan to invest over USD 100 million in the venture over the next three years, a move expected to create approximately 1,800 jobs and significantly bolster local manufacturing capabilities. This spin-off grants CMF the autonomy to develop its own brand identity, marketing strategies, and product roadmap, entirely separate from Nothing’s core mid-tier positioning. The announcement comes just ahead of CMF’s first major product launch—a pair of over-ear headphones scheduled for release on September 29th.
This strategy is a well-trodden path in the smartphone industry. Companies like Xiaomi found immense success by creating Redmi as a distinct sub-brand to dominate the budget category, while BBK Electronics operates multiple brands like OnePlus, Realme, and iQOO to target different consumer segments. By spinning off CMF, Nothing can pursue a high-volume, low-margin strategy without diluting the premium, design-focused identity of the parent brand.
The decision to headquarter CMF in India is a calculated one. It places the brand at the heart of one of the world’s largest and most price-sensitive markets. The partnership with Optiemus provides immediate access to local manufacturing expertise, which will be crucial for keeping costs low and competing with established players. The plan is to solidify CMF’s presence in India first before using it as a springboard for global expansion into other emerging markets.
Why It Matters:
By creating an independent CMF, Nothing can aggressively compete in the crucial budget segment without compromising its core brand’s identity. The deep investment in local manufacturing is a key advantage, enabling CMF to reduce costs, stabilize its supply chain, and offer highly competitive pricing in India and beyond.
Strategic Outlook:

• Market Focus: Global budget-conscious consumers, with India as the initial hub.
• Investment: Over USD 100 Million over three years.
• Job Creation: Estimated 1,800 new jobs.
• Upcoming Launch: CMF Over-Ear Headphones on September 29, 2025.