If you were waiting for a new budget phone from Nothing’s sub-brand CMF this year, you’ll have to wait longer. The company has confirmed it will not launch a follow-up to the CMF Phone 1 in 2025, citing a brutal reality in the component market: memory prices have climbed too high for a budget phone to make sense.
Why memory prices killed the CMF phone sequel
Akis Evangelidis, a key figure at Nothing, posted on social media that the team was actively working on a successor. But the economics simply didn’t add up. “With memory prices where they are right now, we can’t build a phone that feels like a genuine step forward at a price that makes sense for CMF,” he wrote. The result: no new CMF phone this year.
What this means for budget phone buyers in India
For Indian consumers, this is a significant blow. CMF’s Phone 1 was one of the most talked-about budget devices in 2024, offering a unique design and clean software at a sub-₹15,000 price point. The cancellation removes a key contender from the fiercely competitive budget segment, where brands like Realme, Redmi, and Motorola dominate. Buyers looking for a fresh alternative under ₹20,000 now have one less option.
How we got here: The CMF story so far
CMF by Nothing launched in 2024 as a more affordable sibling to Nothing’s main phone lineup. The CMF Phone 1 was praised for its distinctive design (a removable back panel, a physical dial) and near-stock Android experience, all at a price that undercut most rivals. A successor, often referred to in leaks as the CMF Phone 2 Pro, was widely expected in 2025. Rumours even suggested it would launch alongside new CMF Buds. Those plans are now shelved.
Who is affected by this decision
Budget-conscious smartphone buyers are the most directly affected. The CMF Phone 1 had carved out a niche among users who wanted Nothing’s design philosophy without the flagship price tag. Enthusiasts who were hoping for upgrades like a better camera, faster charging, or a higher refresh rate display will now have to look elsewhere. The decision also impacts Nothing’s broader strategy of using CMF to capture price-sensitive markets like India and Southeast Asia.
Nothing’s official explanation
Evangelidis’s statement is the only official word so far. He did not specify exact memory price increases, but the global memory market has seen significant volatility. DRAM and NAND flash prices rose sharply through 2024 and into 2025 due to supply constraints and increased demand from AI and data centre sectors. For a budget phone, where every rupee counts, even a small increase in component cost can wipe out the thin margins that make the product viable.
Why memory prices are squeezing budget phones
The memory market is cyclical, but the current upswing has been particularly sharp. Prices for DRAM (used for RAM) and NAND (used for storage) have risen by double-digit percentages over the past year. For a phone like the CMF, which targets a price point where margins are already razor-thin, absorbing these costs without compromising on specs or raising the price is nearly impossible. Raising the price would defeat the purpose of a budget sub-brand.
What is confirmed and what remains unclear
Confirmed: No new CMF phone will launch in 2025. The reason is rising memory prices. The decision was made internally after evaluating the economics.
Unclear: Whether a CMF phone will return in 2026. Whether the cancellation affects only the phone or also planned audio products. Whether Nothing’s main brand will fill the gap with a lower-priced Phone model. These are all speculations at this point.
Why CMF matters to Nothing’s strategy
CMF is not just a cheaper phone line; it is a strategic entry point. It allows Nothing to build brand awareness and loyalty among younger, price-sensitive consumers who may later upgrade to Nothing’s main phones. The CMF brand also benefits from Nothing’s design language and software experience, creating a cohesive ecosystem. Cancelling the phone for a year risks losing that momentum to competitors who are more aggressive in the budget segment.
The risks of pausing the CMF phone line
The biggest risk is losing relevance. The budget phone market moves fast, and a year-long absence can be damaging. Competitors will launch new devices with better specs, newer designs, and aggressive pricing. When CMF eventually returns, it may find the market has moved on. There is also the risk of disappointing the loyal user base that bought the Phone 1 and expected a natural upgrade path.
A wider trend: Budget phones under pressure
CMF is not alone. The entire budget smartphone segment is under pressure from rising component costs. Brands like Xiaomi and Realme have also had to adjust pricing or reduce specs to maintain margins. The era of the sub-₹10,000 phone with decent specs is fading. Even the ₹15,000–₹20,000 segment is seeing price creep. This cancellation is a symptom of a broader industry challenge: making a good phone at a low price is getting harder.
What should CMF fans and budget buyers do now
If you were waiting for a CMF Phone 2, consider the Nothing Phone 3a (if it fits your budget) or explore alternatives from Realme, Redmi, or Motorola in the ₹15,000–₹20,000 range. If you already own a CMF Phone 1, it remains a capable device and will continue to receive software updates. For those who love Nothing’s design but need a lower price, the used market for the Phone 1 might be worth exploring.
What could happen next
If memory prices stabilise or fall in late 2025 or early 2026, a CMF phone could return. Nothing may also choose to launch a lower-priced variant under its main brand. Alternatively, CMF could pivot to focus entirely on audio products (earbuds, speakers) where margins are healthier. The most likely scenario is a hiatus, not a permanent exit. But Nothing has not committed to any timeline.
Our Take
This is a rare moment of honesty in the smartphone industry. Most brands would quietly delay a product or launch a compromised version. Nothing has chosen to be transparent about the economic reality. That is commendable, but it does not change the fact that budget-conscious consumers lose out. The CMF Phone 1 was a breath of fresh air in a segment that often feels stale. Its absence this year leaves a gap that no other brand quite fills. The hope is that memory prices ease, and CMF returns with a phone that is worth the wait.
Frequently Asked Questions
Is CMF by Nothing launching a new phone in 2025?
No. Nothing has confirmed that CMF will not release a new phone this year due to rising memory prices.
Why did CMF cancel its 2025 phone launch?
The company said memory (RAM and storage) prices have risen so much that it could not build a meaningful upgrade at a price that fits CMF’s budget positioning.
Will there be a CMF Phone 3 or Phone 2 Pro?
Not in 2025. A successor was being worked on, but the project has been paused. A future launch is possible if market conditions improve.
What should I buy instead of a CMF phone this year?
Consider the Nothing Phone 3a (if your budget allows) or alternatives from Realme, Redmi, or Motorola in the ₹15,000–₹20,000 range. The CMF Phone 1 remains a good option if you can find it.
