For a long time, there was a big question: that there was no Android phone which could compete with the tech giant Apple models based on quality. After all this long time, an Android smartphone brand entered the market, OnePlus. OnePlus entered the Android phone market with the primary aim to change the formation of the Android market. They wanted to prove themselves as the ones who could change consumer priorities when buying an Android smartphone; covering overall specifications like gaming, photography, streaming, and long battery backup. They simply aimed to change the formation of the mobile market.
After entering the Android market, OnePlus became the top-selling premium smartphone brand in India, holding a 33% market share. Apart from smartphones, OnePlus also deals in different devices, including earphones, chargers, and Smart Television sets, in over 340 countries. OnePlus was the only smartphone brand to enter the Android Market, and they have made significant strides in the Android market.
History
OnePlus was co-founded by Pete Lau and Carl Pei. At the time, Pete Lau was the Vice President of OPPO, and Carl Pei was OPPO’s Global Marketing and E-Commerce Division Head. When they are visiting a Café with their colleagues from OPPO, they have noticed that all of them were using Apple smartphones. The reason for this was a common belief that Android phones were more concerned with market share than with the quality of their products. They have put forward the concept that was based on the product quality; there was no second best to Apple. This is where OnePlus’ motto, “Never Settle”, originates from, as it provides better options for Android users instead of settling for something lesser.
Production Models
The need for the premium Android smartphone line, the company then has to decide what features to implement in its product lines. Their primary focus throughout the manufacturing process was on quality. As Pete Lau said, we will never be different just for the sake of being different.
The OnePlus production does not focus on the brand-new concept that has never been seen before; instead, it gives more emphasis on improving the actual user experience in day-to-day life. The first product of OnePlus was the highly awaited OnePlus One, which was unveiled just 4 months after the company started on 22nd April 2014. The model received positive reception from the general audience.
Despite all of these, at about half the price of the other competitors, it has been performed on the same level and even higher. Although there were some technical faults and lower camera quality due to the low cost, it has performed very well despite having less availability than its closest competitor in the Nexus series. It has surpassed the expected limit and sets a stable foundation for the company upon which further models were improvised. The later models of the smartphone included improvements on the previous models, and they have received positive reception. The company also introduced the T series, starting from the OnePlus 3 until the 10, and the Pro Series, starting from OnePlus 7 to 8. These models were limited edition variants to the core series, which is designed for luxury users.
OnePlus became the top-selling smartphone brand in India. Some of the features that appealed to the masses were a unique and handy build, continuous improvement in camera quality with every latest model and affordable pricing. The company also announced its intention to venture into the Smart Television market in September 2018, starting with OnePlus TV Q1 and the OnePlus TV U series.
Wireless chargers were introduced along with the OnePlus 8 Series and the wireless earphones, and OnePlus Bullets with the OnePlus 6 series. In every product line, OnePlus puts product quality and affordability first, all the while appealing to different sections of the audience.
Pricing Strategy
The pricing strategy of OnePlus focuses on customers seeking high-quality features in smartphones and other devices without spending too much on them. The company concentrates heavily on the high quality of manufacturing and a relatively low margin of profit, opting to utilize its savings in order to make the products available and affordable to more people around the world. However, the different countries have different prices depending upon the various factors.
Over the years of its operation, OnePlus has used many innovative models and campaigns for the promotion of its products. The following are some of the popular promotional strategies and campaigns implemented by the OnePlus, in order to manage the massive demand in the initial stage of its operation, OnePlus used an Invitation System, where the customers has to sign up for the purchase of the OnePlus One at irregular intervals, they ended the Invitation System with the launch of OnePlus 3 which went on sale on an interactive VR platform. OnePlus dubbed the event as the world’s first ever VR shopping experience.
OnePlus started the Smash the Past campaign on 23 April 2014. As the name suggests, it invited a selected group of customers to smash their old phone in an effort to purchase the OnePlus One for just $1. However, the campaign didn’t work as planned because uninvited customers also started to smash their phones in videos that surfaced online and threatened the reputation of the company. As a result, OnePlus revised the rules, thereby allowing the invited users to donate their old phones instead of smashing them. There were 140000 users and 100 were selected.
OnePlus hired Bollywood legend Amitabh Bachchan as Brand Ambassador for their promotion in India, that was the first brand ambassador for OnePlus. After that, they have in May 2019, they hired Robert Downey Jr.
Slowly but surely, OnePlus is becoming a household name in the smartphone market along with the established brands like OPPO and Samsung, especially in India. However, in October 2020, Carl Pei left OnePlus, and then he founded a new consumer tech company, which is very popular in the Android market, called Nothing. Due to recent events that have strained the relationship between India and China, which resulted in the banning of various Chinese application and their products in India, the brand of OnePlus may be unaffected, but the employment in its Indian stores may dwindle in the near future.
Current Market Situation of OnePlus
The South India Organised Retailers Association has issued a warning to stop selling OnePlus products in their stores starting from May 1. This action is reportedly due to unresolved issues with the company. ORA claims that they have faced significant challenges related to selling OnePlus products over the past year, and these concerns have not been addressed. This information was conveyed in a letter addressed to Ranjeet Singh, Sales Director of OnePlus Technology India.
The retailers have mentioned low profit margins, delays in processing warranty and service claims, and mandatory product bundling as the main reasons for their decision. They have also experienced situations where they are required to bundle products or services with the OnePlus devices, which limits their flexibility and hinders their ability to meet diverse customer needs. This has led to stagnant inventory and loss of sales. Additionally, the retailers have emphasised persistent delays and complications in processing warranty and service claims, resulting in customer dissatisfaction and additional burdens on their end, despite repeated attempts to resolve these issues with OnePlus.
OnePlus have faced some challenges in the Indian market, including a significant drop in market share and a recent decision by some retailers to stop selling their products. This is mainly due to ongoing disputes and a perceived lack of support for retailers in addressing customer issues. OnePlus is actively working to resolve these issues and maintain its presence in India.
OnePlus’s market share in India has substantially decreased. Market share went from 6.1% in 2023 to 3.9% in 2024, a 36% drop in market share. It also recorded a drop from 21% in 2023 to 6% in 2024. However, by facing so many challenges, OnePlus is still resolving all of the issues. They have made many good and flagship killer smartphones, and they are still proving themselves in the Android Market.
