OnePlus, a smartphone brand that built a global fanbase with its flagship devices at competitive prices, is rumored to be shutting down its operations in the U.S. and Europe as soon as this week. Oppo is in the midst of a major restructuring exercise, and it’s due to falling smartphone sales, rising costs and rising geopolitical turbulence.
According to people familiar with the matter, Oppo is reorganising its global smartphone business and OnePlus will be pulling out of Western markets and stay in China. So too will Realme, another Oppo-owned brand looking to exit from China as part of the same restructuring plan.
OnePlus may stop business in the US and Europe in a few days, but has not yet given any firm indication of it, the company said. And earlier this year OnePlus seems to be assessing its strategy in many international markets, after denying initial shutdown rumours.
OnePlus launched in 2013 and quickly caught Android fans' attention with very high value at a much lower price than the best phones under the same category. The brand’s “Never Settle” philosophy, clean software and fast performance made it so popular in Europe, North America and India.
But in recent years the company has been losing battle to Samsung, Google, Xiaomi and other smartphone makers. There was also criticism of OnePlus being integrated with Oppo and the fact that the ColorOS software that Oppo has integrated with it took precedence over OnePlus’ brand identity.
The withdrawal is a reflection of wider challenges smartphone manufacturers are facing worldwide, industry analysts say. There is poor consumer demand, rising prices of consumer products, component costs, supply chain glitches and political uncertainty that have forced companies to rethink their international expansion plans.
OnePlus users in the US and Europe still need to know when for software updates, warranty coverage, and after-sales support will happen. We say all the devices we have already sold will still get the software support for these devices but no one is saying anything about how long we can expect the customer service to be.
India, one of OnePlus’ major and most successful markets, is not included in the immediate shutdown. The company is going to continue to operate in India as of now; if in the long run there is some kind of global restructuring, it might have to happen in this way rather than just in a short time.
If confirmed, the exit would close the loop of OnePlus’ decade-long run at Western markets in which it has been a value-based alternative to Apple and Samsung. It would also reduce competition in the premium Android smartphone category, leaving consumers with fewer choices.
Until Oppo or OnePlus’ official response, the reported withdrawal should be viewed as credible media reports rather than company guidance. And there will be an announcement (or a new policy) on Oppo’s global smartphone strategy that could change everything.
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