Carl Pei left OnePlus in 2020 and founded Nothing, aiming to once again make an impact on the smartphone market. Nothing’s first product was a pair of earbuds, after which the company expanded its lineup to include smartphones that received positive feedback from both users and critics. Six years later, both companies Pei helped create found themselves in similar situations: they are reducing their presence in global markets due to the increasing challenges of the smartphone business, largely driven by a sharp rise in memory prices.

Nothing’s Market Withdrawal

According to reports, Nothing plans to exit at least 12 markets, including Japan, the Middle East, and several European countries. A significant reduction in staff is expected—about 40% globally. The most substantial cuts will affect research and development divisions: around half of the R&D staff in China and 30-40% of the London team will be laid off.

Reasons for the Changes and Market Situation

One of the main reasons for these steps has been low sales outside of India. The Nothing Phone (4b) shipped only about 20,000 units worldwide since its launch, while combined shipments of the Phone (4a) and Phone (4a) Pro reached around 150,000 devices. India was the exception: the company actively developed this profitable market, leading to significant growth—according to Counterpoint Research, Nothing became the fastest-growing smartphone brand in India in the second quarter of 2026, increasing shipments by 105% compared to the previous year. These figures do not include the CMF brand, which was spun off into a separate company last year.

Challenges for CMF

CMF is also facing difficulties. The company does not plan to release new smartphones in 2026 due to rising memory prices, which make launching new devices economically unviable. This is especially relevant for a brand focused on affordable devices, particularly as the segment of smartphones priced under 20,000 rupees in India shrank by 45% in the second quarter of 2026. At least one device originally intended for CMF has been moved to the main Nothing lineup, where a higher price can be justified. Additional challenges arose after the head of CMF India left, leaving the brand without leadership in one of its key markets.

Parallels with OnePlus

At the same time, OnePlus, founded by Carl Pei and Pete Lau in 2013, confirmed it would stop launching new products in Europe and North America. There have also been reports about a possible exit from the Indian market, although OnePlus denies this and claims it will continue operations as usual. Carl Pei has not been involved with OnePlus since 2020, so the reduction of both companies’ market presence is not directly connected, but the parallels between their situations are clear.

Outlook

There has been no official confirmation from Nothing regarding a global scale-back. Companies rarely announce their own difficulties, and any statements are likely to emphasize their commitment to key markets. In the coming months, it will become clear whether Nothing is truly scaling back its global ambitions.