CMF, the budget brand owned by Nothing, will not launch a new smartphone this year. Co-founder Akis Evangelidis shared the news, explaining that skyrocketing RAM prices have made it impossible to build a device that feels like a genuine step forward at a price point that fits CMF. The decision highlights a global component cost crisis, driven by unprecedented demand for AI chips.
Why RAM Prices Are Soaring
RAM costs have surged over the past year due to supply shortages. Chip manufacturers have shifted production capacity toward AI data centers, creating a bottleneck for consumer electronics components. Industry reports indicate that both Apple and Samsung have warned of price increases due to higher memory costs. IDC predicts PC shipments could shrink by nearly 10% this year as a result. This trend is particularly challenging for brands targeting low price segments, like CMF.
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The Success of CMF Phone Pro 2 and the Decision to Wait
CMF launched the Phone Pro 2 in April 2025, marketing it as the lightest and slimmest phone the brand had ever designed, with a battery life of up to two days. Shortly after, Nothing spun off CMF into an independent subsidiary headquartered in India, its strongest market. Despite expectations, Evangelidis posted on X that the team was working on a successor, but current market conditions prevent delivering a product that meets CMF's standards. Better to skip a cycle than to disappoint customers with a minor upgrade, is the brand's transparent philosophy.
New Products Coming (But Not Phones)
Evangelidis confirmed that CMF will launch several new products this year, including entirely new categories. These could be accessories or wearables, but nothing official has been announced. CMF's strategy seems to focus on diversification while waiting for the memory market to stabilize.
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CMF's situation mirrors how the AI gold rush is affecting the entire tech supply chain. The massive demand for AI chips, highlighted by Baseten's record funding for AI inference, is absorbing production resources previously dedicated to consumer memory. The FERC has also had to prioritize power grid access for AI data centers, a sign that infrastructure is struggling to keep up.
For those interested in startups reshaping tech, the recent YC Spring 2026 Demo Day featured several companies focused on AI hardware optimization, a sector that could ease RAM price pressures in the future. Innovation in chip manufacturing may eventually balance supply and demand, giving brands like CMF room to breathe.
Source: https://www.engadget.com/2198323/nothing-budget-brand-cmf-new-new-phone-this-year
