Nothing has confirmed it will not launch a new CMF-branded smartphone in 2026, becoming one of the first major casualties of the soaring DRAM and NAND memory prices that are rippling through the entire smartphone industry. Co-founder Akis Evangelidis revealed that while work on a successor to the popular CMF Phone 2 Pro was completed, the economics simply no longer made sense at the brand's target price point.
Why Nothing Pulled the Plug on CMF
Speaking to press on June 19, Evangelidis explained the painful calculus behind the decision: "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." The CMF Phone 2 Pro, which launched around April 2025 at approximately A$427, would today cost between A$490 and A$567 to build with identical specifications — a price hike driven almost entirely by the soaring cost of memory components.
Nothing CEO Carl Pei offered additional context during a recent industry briefing, noting that "memory now accounts for more than half of a smartphone's total hardware cost. In some cases, it has become a larger expense than the processor or display." This is a striking reversal from just a few years ago, when memory was a relatively minor line item in the bill of materials.
This development echoes broader trends we've been tracking across the mobile industry. As we reported in our recent piece on smartphone shipments declining 15% in 2026 amid rising memory prices, the cost of DRAM and NAND has been climbing due to constrained supply chains and explosive demand from AI data centers. Apple has similarly confirmed that price hikes are coming as the RAM shortage bites, with CEO Tim Cook warning about "significantly higher memory costs."
Nothing's 'B Series' — A Silver Lining
While the CMF line is on hold, Nothing hasn't stopped innovating. Nothing India posted cryptic teasers this week hinting at an entirely new product line, dubbed the "B Series" by industry watchers. A teaser video posted June 21 shows a transparent rear panel with a single rear camera — a notable departure from Nothing's recent multi-camera designs. The posts read "It's (b)eginning" and "(b)usted," fueling speculation about a Phone 4b or broader B-series lineup targeting a different market segment.
Leaks suggest the device originally planned as the CMF Phone 3 Pro — featuring a Qualcomm Snapdragon 7s Gen 4 chipset, a 5,500mAh battery, and a metal frame — may now launch under the core Nothing branding instead. Tipster Yogesh Brar indicates an India launch could come as early as July 2026.
Pokémon Codenames and Earbuds
Adding to the intrigue, Nothing's trademark Pokémon codenames have surfaced again. Upcoming devices include "Blastoise" (a new smartphone) and "Jumpluff" (likely next-generation affordable earbuds, possibly the Ear 3a). The codename approach has historically pointed to products at various stages of development.
What This Means for the Broader Smartphone Market
Nothing's decision is a canary in the coal mine for the wider industry. Smaller OEMs lacking the purchasing power of Samsung and Apple face the most acute pressure. The likely consequences across the market include:
- Reduced specifications: Budget and mid-range phones may ship with less RAM and lower storage tiers to maintain price points.
- Longer upgrade cycles: Brands may delay product refreshes rather than launch devices at uncompetitive prices.
- Higher retail prices: Some of the cost increases will inevitably be passed to consumers.
These pressures are playing out against the backdrop of an already challenging 2026 smartphone market where brands like Samsung are pushing premium foldables and AI features to justify higher price tags. The divergence between premium and budget tiers is likely to widen further.
Industry Context: Why Are Memory Prices Soaring?
The root cause traces back to the AI boom. Massive data centers being built by Microsoft, Google, Meta, and Amazon consume enormous quantities of high-bandwidth memory (HBM) for AI training and inference. This has stretched global DRAM and NAND supply, with manufacturers prioritizing high-margin HBM over commodity smartphone memory. The resulting shortage has driven up prices across the board.
For context, this aligns with major industry movements we've reported on, including Europe's €150B Cloud and AI Development Act and regulatory pushes worldwide — all of which are competing for the same limited semiconductor supply chains.
What's Next for Nothing?
Nothing's willingness to publicly discuss the financial realities behind its product decisions offers a rare transparent look at the challenges facing the smartphone industry. While the CMF brand takes a breather in 2026, the company appears to be repositioning with new product lines, a potential B-series, and continued investment in its core lineup. For consumers, the takeaway is clear: the era of ever-improving budget phones with steadily declining prices may be pausing, at least for now.
Originally published on TekMag
