OnePlus was the ultimate flagship killer, now it’s fighting for relevance

For much of the last decade, OnePlus occupied a unique place in the global smartphone industry.

It never matched Samsung’s scale or Apple’s ecosystem. Yet for a generation of Android users, it became the default recommendation for anyone looking for flagship performance without paying flagship prices.

That journey has now entered a new chapter.

On Thursday, OnePlus announced that it will stop launching new products in Europe and North America as part of what it described as a “proactive global strategy adjustment.” The announcement comes hours after Bloomberg reported that parent company Oppo was restructuring its smartphone business and planning to wind down OnePlus operations across several international markets.

Also Read: OnePlus, once popular with tech fans, to pull out of US and Europe

While the company has now confirmed its withdrawal from Europe and North America, it has not announced any such plans for India. Responding to ET Online’s queries earlier, OnePlus India said: “OnePlus India continues to operate its business as usual, with all local operations on track. We urge the media to exercise restraint before amplifying unverified speculation.”

The confirmation ends weeks of speculation around OnePlus’ international strategy, although questions remain about what it ultimately means for other key markets such as India. The move has once again put the spotlight on a company that, despite never becoming one of the world’s largest smartphone brands, played an outsized role in shaping the premium Android market.

The “flagship killer” era

Founded in 2013 by Pete Lau and Carl Pei, OnePlus entered a premium smartphone market largely dominated by Apple and Samsung.

Its strategy was relatively simple. Offer flagship specifications at significantly lower prices, pair them with a clean Android experience and build a community instead of relying on expensive advertising.

The original OnePlus One launched in 2014 with Cyanogen OS before the company later introduced OxygenOS, which became one of its biggest differentiators. The invite-only sales model generated considerable buzz, while subsequent launches such as the OnePlus 3, 5 and 6 established the company’s reputation as the original “flagship killer.”

The strategy translated into rapid growth.

According to Counterpoint Research, OnePlus’ global smartphone shipments grew 270% year-on-year in 2018, making it one of the fastest-growing premium smartphone brands globally. That year, it entered the world’s top five premium smartphone brands despite accounting for only around 2% of the global premium smartphone segment — an indication that its influence extended well beyond its shipment volumes.

Europe helped establish the brand’s credibility, but India became its biggest success story.

India became the growth engine

OnePlus entered India in late 2014 through an exclusive partnership with Amazon, at a time when the country’s premium smartphone market was still relatively small.

The company found an opportunity between expensive flagship devices from Apple and Samsung and the rapidly growing budget Android segment. The strategy worked.

According to Counterpoint Research, OnePlus became India’s largest premium smartphone brand in the second quarter of 2018, capturing 40% of the premium smartphone segment. It retained the lead through the year, ending the fourth quarter with 36% market share.

Its premium-market dominance became most visible in 2019, even though its shipment peak came later in 2023.

Counterpoint estimated that OnePlus became the first premium smartphone brand to ship more than 2 million smartphones in India in a calendar year. At the time, India contributed nearly one-third of the company’s global revenue, highlighting just how central the country had become to OnePlus’ business.

“OnePlus entered India in 2014 as a premium Android challenger with its ‘flagship killer’ positioning, offering strong hardware at prices below Apple and Samsung,” Prachir Singh, Senior Research Analyst at Counterpoint Research, told ET Online.

“India soon became i…