Bombshell report claims Nothing could exit 12 markets within weeks amid global struggles

Less than a week ago, we told you about the spectacular sales growth of Nothing phones in India. The positive news is now being erased, as a new bombshell report claims Nothing is between a rock and a hard place.

Carl Pei's company has some tough decisions to make and it could very well end up withdrawing from no less than 12 (!) markets across the world. What's more, many people will probably lose their jobs.

Per the latest stats, Nothing was the fastest-growing brand in India in April, May and June 2026, compared to the same 2025 period. The company enjoyed a whopping 105% year-on-year growth thanks to the strong demand for the Phone (4a) series and the RCB cricket team sponsorship during the Indian Premier League.

But the picture could turn out to be different.

The new report

The latest exclusive by Digit (the largest online personal technology community in India, as they put it) has it that Nothing "contracting its global footprint, cutting headcount and managing internal financial strain".

Per the report, things are "so dire" that Carl Pei's company will most likely exit from 12 countries over the next weeks.

Will Japan wave Nothing goodbye?

According to the information (Digit says it has independently confirmed it), Nothing could exit from countries in the Middle East, Japan and parts of Europe.

That's, however, not the end of it, as the global headcount "is being reduced" by 40%.

Nothing's R&D (Research and Development) unit will also take a blow. The firm's R&D is split 70:30 between China and the UK. Those in China could face a 50% rate of slashed jobs, while those in the UK – somewhere between 30 to 40%.

Numbers in detail

The recently announced Nothing Phone (4b) – the rebranded device that's likely a canceled CMF handset – has shipped around 20,000 units in the world so far.

Meanwhile, the Phone (4a) and Phone (4a) Pro have achieved combined sales of ~150,000 units.

Overall, Nothing shipped around 2 million phones worldwide in 2025, but keeping that momentum in 2026 is close to impossible. You know how memory chip prices have skyrocketed (about fourfold since September 2025), which forces OEMs to raise prices. That, in turn, has hurt demand across the market.

Budget-friendly phones have become much harder to sell because of that.

No new phones in 2026

CMF, Nothing's budget sub-brand focused on phones under $300, won't launch a new smartphone in 2026. Nothing's co-founder Akis Evangelidis confirmed the decision.

The company is also facing another setback. Himanshu Tandon, the executive who helped turn CMF into one of the most talked-about budget smartphone brands, has stepped down. With no new phone on the roadmap and a key leader gone, CMF now faces a difficult challenge in staying relevant through the rest of 2026.

There's more (or should I say, less) to the 105% growth story

Nothing's strong growth in India comes with an asterisk. Counterpoint's reported 105% year-over-year growth does not include CMF, which became a separate brand in 2025. The figure reflects sales of Nothing-branded phones, mainly the Phone (4a) series.

The company has done better than many rivals in India, but the growth comes from a relatively small starting point. Selling twice as many phones is easier when overall volumes are still modest.

At the same time, Nothing faces a much tougher picture globally, where smartphone shipments are slowing and higher component costs are squeezing the market.

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