OnePlus is a major player in the Indian smartphone market, offering a variety of devices ranging from flagship phones to mid-range phones like the new Nord CE 4. However, the situation across North America looks very different and, as things stand, a little unclear. With a limited selection of phones and a lack of support from major carriers, it remains to be seen how the company will hold its own in a smartphone market dominated by smaller players like Samsung and even Motorola.
OnePlus’ journey in the U.S. has been full of surprises. The company recently launched the OnePlus 12R in North America, a mid-range and high-end phone in the company’s R series, which has not previously been sold in the United States. Over time, the company’s strategy evolved based on its target audience and its products expanded, launching the first Wear OS smartwatch, a high-end foldable, and the first tablet.
OnePlus’ flexible strategy
A decade ago, the company positioned itself as a global brand rather than a Chinese one. It’s been called a “flagship killer,” offering phones with high-end features at a lower price than established giants like Samsung and Apple. Recently, it shifted to a 1+4=X strategy, focusing on a flagship phone that offers premium features in terms of design, display, camera, and battery, while expanding into various other products such as wearables and smart TVs.
“OnePlus is a young and nimble player in the market and understands the need to remain flexible and meet market demands,” said Maurice Klaehne, senior research analyst at Counterpoint Research.
As a result, OnePlus has decided to reposition itself as an “ecosystem builder”, offering a range of devices beyond phones, such as the recent OnePlus Watch 2 and OnePlus Tablet.
Anshel Sag, senior analyst at Moor Insights & Strategy, said OnePlus wants to “provide a ‘halo’ effect with a range of affordable devices like the 12R and Nord series. They are also building an ecosystem of products like smartwatches and tablets around the phone-led experience.” .”
Unlike other Chinese mobile phone brands that often compete with each other, OnePlus hopes to become an important representative of global mobile phone manufacturers.
It has found success in India, becoming the fastest-growing smartphone brand in 2023, with year-on-year growth of 68%. Sag attributes OnePlus’ success in India to its strong community and brand recognition.
However, the U.S. is a harder shell to crack “because it requires more marketing dollars as well as operator involvement, and simply certifying operators is not enough, even though it is expensive,” Sager added. Cellular carriers dominate the U.S. smartphone market, and most people rely on them to buy new devices every year. It wasn’t until 2018 that OnePlus partnered with T-Mobile to launch one of its best-selling devices, the OnePlus 6T.
Selling a phone in the U.S. requires a huge marketing push and deep carrier involvement, which can be expensive.
OnePlus has had a partnership with T-Mobile for some time, with the OnePlus 7 Pro and other devices being exclusive to the carrier. However, the partnership hit a snag when the OEM decided not to launch the OnePlus 11 on T-Mobile and instead sell the unlocked flagship phone through retailers like Best Buy and Amazon. Presumably, there’s a disagreement surrounding the device’s timeline, with T-Mobile wanting the phone to be on shelves longer than OnePlus would like. It also had a brief partnership with Verizon in 2020, but that also ended quickly.
While its flagship phones don’t seem to be making much traction in the U.S. market, the company has launched its budget-focused Nord N series of phones. OnePlus benefits from a carrier partnership with T-Mobile and the launch of the Nord N10, N100 and N200 5G in 2021, followed by newer devices such as the Nord N300 5G in 2022. However, as of now, only the Nord N30 is available through carriers, which means consumers will have to go elsewhere to buy other OnePlus models.
When we compare the Indian OnePlus website with the North American website, we see clear differences. In India, the company offers five flagship phones and three Nord series phones. Meanwhile, the selection on the US site is narrow, with just four phones in total: the OnePlus 12 and 12R, the OnePlus Open, and the Nord N30.
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Kleiny noted that the company is working to make its phones more attractive to the heavyweights, despite the small number of products. “Nonetheless, the company is offering deep discounts on its devices through trade-in programs through OnePlus stores and other stores, which is a good way to attract customers.”
A OnePlus spokesperson told Android Central that the company “customizes its product portfolio based on different consumer needs in different regions.” With the U.S. market dominated by high-end players like Samsung and Apple, OnePlus clearly wants a piece of the pie. Meanwhile, OnePlus declined to comment on how the sub-flagship 12R will perform in North America, although it’s still early days.
The future of OnePlus in the United States
In an interview with Forbes in 2023, OnePlus North America CEO Robin Liu said that the company’s mission is to focus on products that provide customers with the best experience. “We are also targeting different audiences – spreading our brand awareness to more users. This will take some time as it costs a lot (money and effort). We are also working with retail partners to expand our offerings A bigger audience.”
Whether OnePlus can successfully enter the North American market is still unknown. However, the company said it will continue to “introduce high-end flagship smartphone devices to the North American market at affordable and competitive prices.”
Sag reiterated that Chinese OEMs have the most difficulty entering the market, which he believes is the biggest challenge facing OnePlus. That perception may still impact OnePlus’ performance in the U.S. as tensions continue to affect relations. “Huawei is number one. You don’t see a lot of TCL or ZTE anymore, and the same goes for OnePlus.”
Klaehne pointed out that if OnePlus can also enter other markets, it will be harder for OPPO to enter.
Data from the fourth quarter of 2023 show that while Samsung and Motorola accounted for 18% and 8% of the US market respectively, OnePlus still fell into the “other” phone category, accounting for 8% of overall sales. For context, TCL and Google squeezed out 1% and 2% of the market respectively.
The dominance of Apple, Samsung, and to some extent Motorola/Google in the U.S. market has always challenged OnePlus in the carrier market, especially where market share is limited compared to other regions. The U.S. market is difficult to penetrate because it is dominated by carriers, margins are low, and carriers often have specific requirements for SKUs and specifications.
“To continue to succeed, OnePlus should focus on its ecosystem approach and provide consumers with a strong value proposition combined with a clear message and a cohesive product line,” Klein said.