Nothing CEO Carl Pei: India set to produce global consumer electronics giants
Synopsis
Nothing CEO Carl Pei has made a bold call: India will produce its own global consumer electronics giants — the only question is when. Backing the claim with action, Pei is spinning CMF into a majority Indian-owned, India-headquartered company with its own R&D. His argument: manufacturing is table stakes; the real leap is product development, and India is closer to that leap than most realise.
Key Takeaways
Nothing CEO Carl Pei said on 21 September that India is poised to produce global consumer electronics champions, citing its status as the world's second-largest smartphone manufacturer .
Pei argued that R&D capability — not manufacturing — is the missing piece separating Indian brands from global scale.
Nothing plans to spin out its CMF brand as a standalone, majority Indian-owned company headquartered in India with dedicated local R&D.
Pei drew parallels with Japan , South Korea , and China , all of which evolved from manufacturing hubs to global brand exporters.
In 2015 , Indian smartphone brands held nearly half of domestic sales , with one briefly outselling Samsung — a momentum Pei says must now be rebuilt on stronger product foundations.
Nothing CEO Carl Pei on Monday, 21 September declared that India is on track to produce its own global consumer electronics champions, citing the country's position as the world's second-largest smartphone manufacturer, its vast youth population, a deep software talent pool, and a growing manufacturing base. Speaking in New Delhi, Pei said the critical next step for India is not assembly but the development of in-house research and development capabilities.
The Inflection Point Argument
Pei drew a direct parallel between India today and the trajectories of Japan, South Korea, and China — three countries that built consumer electronics manufacturing at scale before eventually producing globally recognised brands. He argued that India has now reached a similar juncture, with much of the industrial foundation already in place. According to Pei, his eight years in China gave him a first-hand view of how a manufacturing ecosystem can evolve into a global powerhouse — and that experience has shaped his conviction that India can follow the same path, provided companies invest in engineering and product development rather than limiting their ambition to assembly.
Manufacturing Is Step One, R&D Is Step Two
Pei was direct about where he sees the gap. 'Manufacturing is step one. Step two is R&D,' he said. He argued that genuine R&D capability is what separates companies capable of sustaining long-term growth from those that remain dependent on products developed by external manufacturing partners. Without that capability, even large-volume producers risk being left behind as market dynamics shift.
Nothing's CMF Spin-Off: A Bet on India
To back his argument with action, Pei revealed that Nothing intends to spin out its CMF brand into a standalone Indian company. The new entity will be majority Indian-owned and headquartered in India, with its own dedicated team and R&D capabilities based in the country. Nothing will remain a shareholder and partner in the business. The move is framed as a deliberate contribution to India's journey toward building home-grown global brands.
Lessons from 2015 and What Comes Next
Reflecting on India's smartphone market in 2015, Pei noted that domestic brands at the time accounted for close to half of all smartphone sales in the country, with one Indian brand briefly overtaking Samsung to become the best-selling smartphone label. That momentum, he suggested, was not sustained because it was not backed by deep product development capability. 'India will produce global consumer electronics companies. The only question is when, and that depends on who builds them,' Pei said. The next wave of Indian consumer electronics brands, he argued, will be defined by those who invest in building products themselves rather than relying on others to design them.
Point of View
And China's success required sustained state support. Whether India's private sector alone can replicate that, without comparable industrial policy, remains the real question Pei's optimism does not fully address.
NationPress
21 Sept 2026
Frequently Asked Questions
What did Nothing CEO Carl Pei say about India's consumer electronics industry?
Carl Pei said India is on track to produce its own global consumer electronics champions, comparing its current position to the early trajectories of Japan, South Korea, and China. He argued that India already has the manufacturing base and talent pool, and that investing in R&D is the critical next step.
What is the CMF brand spin-off that Nothing is planning in India?
Nothing intends to spin out its CMF brand as a standalone Indian company that will be majority Indian-owned and headquartered in India, with its own team and R&D capabilities. Nothing will retain a stake and act as a partner in the new entity.
Why does Carl Pei say R&D matters more than manufacturing for Indian brands?
Pei argues that genuine R&D capability is what separates companies that can sustain long-term growth from those dependent on products developed by external manufacturing partners. He said 'Manufacturing is step one. Step two is R&D,' drawing on his eight years in China as evidence of how that transition works.
How does India's smartphone market today compare to 2015?
In 2015, Indian smartphone brands held close to half of domestic sales, with one Indian label briefly outselling Samsung. India is now the world's second-largest smartphone manufacturer, but Pei notes that sustaining and expanding that position requires home-grown product development, not just assembly.
Which countries did Carl Pei reference as models for India's electronics ambitions?
Pei cited Japan, South Korea, and China as countries that built consumer electronics manufacturing at scale before producing globally recognised brands. He believes India is at a similar inflection point and can follow that path if companies invest in engineering and product development.
