London-based Nothing is reportedly exiting 12 or more global markets and cutting global headcount by 40% amid declining device shipments and skyrocketing component costs. Despite strong growth in India during Q2 2026, the company faces severe financial strains that have also derailed its affordable CMF product line.
The global smartphone landscape is facing a profound squeeze. Skyrocketing RAM and storage expenses have battered hardware makers, creating severe economic headwinds across the entire industry. Following market exits by competitors like OnePlus, Nothing is apparently set to stop sell phones in a swath of international territories as its latest device releases struggle to find traction. Rising component prices have wreaked havoc — not only are we seeing higher phone prices across the board, but the resultant economic headwinds are also directly affecting how well companies can survive in the market. The situation is bad enough that OnePlus had to exit the North American and European markets, and it seems even Nothing could exit some European markets.
Global Market Exits and Deep Headcount Reductions
Nothing is in the process of shutting down operations in 12 or more global markets over the coming weeks, according to information independently confirmed by Digit. The affected regions include Japan, parts of Europe, and the Middle East. According to a report by Digit, London-based Nothing is allegedly scaling down its global footprint by exiting 12 markets over the next few weeks. This follows a sharp drop in global device shipments, even though the company continued to grow in key regions like India. Digit.in reports that Nothing is preparing to exit 12 or more global markets
including Japan, parts of Europe, and parts of the Middle East.
Alongside the regional contraction, global headcount is being slashed by 40%. The company’s research and development division, which is split 70:30 between China and London, is facing severe cuts with approximately 50% layoffs in China and 30 to 40% in London. The company’s R&D unit, split 70:30 between China and London, is facing layoffs of around 50% and 30-40%, respectively. This also comes with layoffs of around 40% of the company, with Nothing’s R&D unit also facing significant layoffs both in its China and London-based locations. Nothing hasn’t officially confirmed these reports at this time.
These operational contractions reflect a sharp drop in worldwide device sales. The Nothing Phone (4b) has shipped roughly 20,000 units globally since its launch earlier this month. Meanwhile, the Phone (4a) and Phone (4a) Pro have reached a combined total of around 150,000 units. The report notes that the most recent Nothing Phone 4b has allegedly shipped approximately 20,000 units globally since its launch earlier this month. The Phone 4a and Phone 4a Pro have allegedly shipped a total of 150,000 units. In comparison, the company is said to have sold 2 million units globally in 2025. These figures stand in stark contrast to the company’s performance in 2025, when Nothing sold approximately 2 million units globally. Very rough math puts sales on pace with each other, but they still sound way behind last year. In 2025, Nothing apparently shipped two million devices largely on the back of its budget-focused releases. Nothing publicly said that Phone (4a) sales were outpacing targets initially, but if these new figures are accurate, it sounds like things slowed down after the initial debut. These figures show that Nothing is not immune to the pressures of a weak global smartphone market.
The Impact of RAMageddon and the CMF Product Freeze
Sustaining last year’s volume has proven difficult as memory prices have surged. According to Counterpoint Research figures cited in recent reports, memory prices have risen approximately four times since September 2025. The resulting price hikes have weakened consumer demand across the board, crushing the mass market segment. Nothing sold approximately 2 million units globally in 2025 but sustaining that base in 2026 is harder as memory prices have risen approximately four times since September 2025 according to Counterpoint Research and the resulting price hikes have weakened consumer demand across the board. Nothing is not insulated from those pressures. Global shipment volumes are under strain and in a market where the mass segment has effectively collapsed, brands that operate at lower price points are feeling it most sharply.
This cost crisis directly impacted Nothing’s affordable sub-brand, CMF. Before the Phone 4b’s launch, Nothing confirmed that skyrocketing RAM and storage costs had forced the company to cancel the successor to the CMF Phone 2 Pro. To launch the device under the CMF banner with its intended specs, the price would have ballooned from its usual sub-$250 sweet spot to roughly Rs 30,000-35,000 (~$317-$370), a price tag that didn’t fit the CMF identity. CMF, Nothing’s sub-brand built around devices priced under Rs 30,000, has no new smartphone planned for 2026. CMF’s entire identity was built on delivering well-designed, feature-rich hardware in the sub-Rs 20,000 bracket, a segment Counterpoint says fell 45% year on year in Q2 2026 alone. The economics of that segment have been broken by memory costs. As such, CMF cannot price a successor where it needs to be without either gutting the specification or absorbing losses it cannot absorb.
“We were working on a successor, but 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.”
Akis Evangelidis, Nothing co-founder, via Digit
Instead of scrapping the hardware entirely, Nothing pivoted and rebadged the device into the Nothing Phone (4b). However, this leaves the CMF brand without a hero product for the foreseeable future. Leaks suggested that instead of scrapping the hardware altogether, Nothing pivoted and rebadged the phone into what eventually launched as the Nothing Phone 4b. However, this leaves the CMF brand without a hero product for the foreseeable future, according to the Digit report. The result is that at least one device originally planned for CMF has been moved to the main Nothing brand, where a higher price point is more defensible.
Bright Spots in India Amid International Contraction
While international operations face severe contraction, Nothing has found contrasting success in South Asia. Nothing was India’s fastest-growing smartphone brand in Q2 2026, posting 105% year-on-year growth according to Counterpoint Research, driven by the Phone (4a) series and the company’s title sponsorship of the Royal Challengers Bengaluru during the IPL 2026. While the India numbers are real, they are also incomplete. Nothing is still finding success in some places, with its phones doing very well in India, and its audio products also continuing to be steady. But a large-scale exit from many global markets combined with layoffs shows that things aren’t perfect behind the scenes. In the wake of OnePlus killing off its global ambitions, it’s a reminder the impact that RAMageddon is having on the Android landscape.
Related reading
