Nothing has announced plans to spin off its sub-brand CMF, which specializes in more affordable smartphones, earbuds, and wearables, into a standalone subsidiary based in India. Carl Pei, the founder and CEO, stated that the goal is to establish CMF as India’s “first truly global consumer tech brand.” The company is partnering with local manufacturer Optiemus in a joint venture to develop this new subsidiary and plans to invest over $100 million, which is expected to create at least 1,800 jobs within three years.
This financial commitment follows a recent funding round in which Nothing raised $200 million, valuing the company at $1.3 billion. The timing of this announcement aligns with CMF’s upcoming product launch, specifically the introduction of its first pair of over-ear headphones, scheduled for September 29. These products are expected to maintain CMF’s focus on affordability, with the top smartphone model, the Phone 2 Pro, priced at $279 during its US beta release. Other devices, such as watches and earbuds, are priced below $100.
As Nothing navigates this new market entry, it raises questions about the strategies the company will employ to position CMF in the competitive consumer tech landscape in India.
Source: https://www.theverge.com/news/785474/nothing-spins-off-budget-brand-cmf-india