Nothing’s budget phone brand, CMF, won’t release a new phone in 2026. The company’s co-founder, Akis Evangelidis, confirmed the decision recently. He explained that rising memory prices have made it impossible to build a worthy successor at an affordable price.

The CMF Phone 2 Pro, launched last year, was praised for its slim design and solid performance in the budget segment. It offered features like a telephoto sensor and two-day battery life at a low price. But the cost of memory chips, especially RAM, has surged. This pushed the production cost well above what CMF phones usually target.

Evangelidis said they were working on a follow-up phone. But with memory prices where they are now, they couldn’t make a phone that felt like a true upgrade and still fit CMF’s price goals. So, they decided to skip launching a CMF phone this year. He added they’d rather be upfront than release a product they weren’t proud of.

Memory Prices Are Changing the Smartphone Game

RAM prices have spiked because chip makers are focusing on AI infrastructure. These high demands for AI systems are eating up a lot of memory supply. This shortage pushed prices up sharply over the past year. Big players like Apple and Samsung have warned that their product prices will rise due to this memory crunch.

Nothing’s CEO Carl Pei said RAM has become the most expensive component in a smartphone. It now costs more than the processor and display combined. For budget phones, this is a huge problem. The CMF Phone 2 Pro’s specs would cost 50 to 85 percent more to produce today. That increase undermines the brand’s identity as an affordable option.

What This Means for CMF and Nothing’s Future

CMF hasn’t been canceled entirely. Evangelidis said the brand will launch new products this year, including some new categories. But none will be smartphones for now. The company is focusing on keeping CMF’s value and reputation intact.

Meanwhile, Nothing’s main brand still plans to release new smartphones in 2026. The company has teased two upcoming devices, codenamed “Blastoise” and “Jumpluff.” Industry insiders think Blastoise might be the Nothing Phone 4, possibly repurposed from the canceled CMF phone project. Jumpluff could be a new audio product, like headphones.

The rise in memory prices is a challenge faced across the smartphone industry. Premium brands can pass these costs to customers, but budget brands like CMF cannot. This situation raises questions about how low-cost phones will survive if component prices keep rising.

For now, Nothing is waiting out the memory price spike. If prices drop in 2027, CMF might return with a new phone that fits its budget-friendly goals. Until then, the brand will focus on other products and categories.