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Last Updated : Oct 11, 2019 07:55 PM IST | Source: Moneycontrol.com

No slowdown blues for OnePlus as sales skyrocket

The company hopes to close the festive season with double-digit growth with special focus on increasing penetration in the offline market.

Sakshi Batra @sakshibatra18

A strong response to the recently launched OnePlus 7T and the OnePlusTV has helped the Chinese smartphone and TV maker clock in 100 percent growth in sales during the online festive season sales, clocking in Rs 500 crore in the first two days.

The sharp growth has been driven by the launch of a new product category - the OnePlusTV and two variants of the OnePlus 7T phone.

The company hopes to close the festive season with double-digit growth with special focus on increasing penetration in the offline market.

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OnePlus will expand its offline stores (currently 15 in Maharashtra, Pune, Bengaluru & Delhi NCR) to 35 stores by the end of this year and to 100 stores in top 50-cities by the end of 2020.

Vikas Agarwal, GM, OnePlus India, told Moneycontrol that despite the consumption slowdown, OnePlus hasn't seen any impact of the slowdown in the nine months of CY19, instead, the year has been a successful one for the smartphone industry.

However, the overall economy is under stress so there could be an impact in 2020 or 2021 although that will be in certain segments as premium segments are not price-sensitive, according to him.

According to International Data Corporation's (IDC) Asia/Pacific quarterly mobile phone tracker, during the second quarter of 2019, smartphone shipment rose to 36.9 million from 32.1 million during the previous quarter in India.

OnePlus also believes that if slowdown had not been there, the premium segment would have grown much faster given the low penetration.

Despite 10 years of the smartphone market, the premium segment accounts for less than 4 percent of the total of 5 billion mobile phones used across the world.

It also expects the smartphone market to double or even triple in the next 3 years with the growth of about 20 percent in the premium segment despite the challenging environment.

"In Q1FY20, OnePlus had recorded 43 percent market share, which is greater than the sum of the next two players," Agarwal said.

The company is increasing its focus on India which contributes half of the global market share and is expected to be the fastest-growing market for the company.

OnePlus has already announced Rs 1,000 crore investment for its R&D centre in India. OnePlus will soon begin manufacturing the OnePlus TV in India and is looking at exports from India as well.

On its product portfolio, the company will continue to focus on its high-end and ultra-premium segments of smartphones and TV. It is, however, not looking at introducing products in the mid or low range segments for now.

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First Published on Oct 11, 2019 07:55 pm
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