Why OnePlus wants to offer a mid-range Android phone in India

For a company that only sells premium smartphones, OnePlus’ shift to mid-range phones comes as a surprise to many in the industry. If we look at OnePlus’ market share in India, it does need to offer a mid-range phone. The brand dominates the premium segment and is counted among the top three players.

While some think the OnePlus Nord is an answer to the iPhone SE, I think a medium-priced phone is a part of the long-term game. The main idea behind the OnePlus Nord is not to convince consumers to buy a low-cost alternative to the OnePlus 8, but to pull them into the ecosystem.

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Besides selling smartphones, OnePlus has been growing its product portfolio, which now includes TVs and soon maybe truly wireless earbuds. Until last year, OnePlus was concentrated more on the high-end of the smart TV market. But last week, the brand entered the mainstream TV market with its Y-series that starts from just Rs 12,999. The cost of the 32-inch TV is on par with what the competition charges for its products. This gives us some fair idea of how Vikas Agarwal and his team are moving the needle and making their products accessible to the masses.

OnePlus’ 32-inch TV costs just Rs 12,999. (Image credit: OnePlus India/Twitter)

A medium-priced phone with the right set of specifications when sold to customers serves both purposes. This could not only increase smartphone unit sales but also expand the brand’s reach, especially among a new set of customers who otherwise would think twice about spending their money on an expensive OnePlus smartphone or TV. And here’s the thing: the expansion of the ecosystem means the same customer who bought the OnePlus Nord might be tempted to buy a high-end OnePlus 4K TV. This strategy does help OnePlus to grow beyond the smartphone market, which is now reaching saturation like PCs.

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But will the strategy work in India? It’s one question that still has no answer. By entering the mid-range smartphone and TV segments, OnePlus is actually competing with Xiaomi and its own BBK-owned brands at the end of the day. OnePlus’ revamped market approach is unlikely to have any direct impact on Samsung or Apple.