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In today’s newsletter:

• Why OnePlus is investing Rs 6,000 cr in India 
• Myntra rides quick commerce wave
• IT firms’ time and material deals halve in 20 years

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OnePlus is making a bold move to reclaim its lost glory in India.

In an exclusive interaction with us, Robin Liu, OnePlus' newly appointed India CEO, revealed ambitious plans for the brand's future in India. 

• Under its newly launched Project Starlight, OnePlus is set to invest a whopping Rs 6,000 crore over the next three years

Liu said that the investment will be directed towards R&D, services, and retail expansion and quality control on the manufacturing side.

• The company plans to increase the number of service centers to 500 by mid-2026

• It also plans to focus on improving its offline retail presence by opening more experience stores and upgrading existing ones

The renewed emphasis on quality stems from complaints by Indian users regarding the 'green line' display issue affecting various smartphone brands. Liu said that OnePlus is dedicating resources to tackle such display-related problems.

After a decline in market share, particularly in the premium segment, OnePlus is shifting its focus back to high-end devices. 

• The brand is looking to re-establish itself in the Rs 20,000-and-above category 

Liu stressed that OnePlus will never rely on a volume-driven strategy but will instead prioritise delivering top-notch products. 

"India’s middle and premium segments are growing rapidly, with stable year-on-year growth. This is why India remains our top global priority. We aim to serve this market with innovative, premium offerings that cater to evolving consumer preferences," Liu said.

The company plans to integrate AI-driven features into its devices, focusing on productivity-related use cases tailored to Indian users. 

• Liu said that while 50-60% of these features will appeal globally, 20-30% will be localised to address the needs of Indian users

Read the full interview

We’ve quickly gone from ‘who needs groceries in 30 minutes’ to ‘I am refreshing my wardrobe in 30 minutes’.

Myntra has launched M-Now, its rapid delivery arm that will deliver clothes and accessories in 30 minutes to customers in Bengaluru.

• It plans to expand to Mumbai, Delhi, Pune and other cities, including non-metros in the coming months, chief Nandita Sinha told us
  
  
• It currently has 10,000 stock keeping units (SKUs) and has plans to increase the assortment to 1,00,000 over time

The increase in assortment will happen through a network of dark stores. 

• Myntra has tied up with third-party players for dark stores. It does not operate its own dark stores, unlike other quick commerce companies
  
  
• Myntra will also partner with the stores of multiple brands to ship to customers directly to save time 

However, the faster deliveries will not come at an additional cost, at least for now…

“Right now we are just launching, so no different (pricing) is planned. But the space will evolve,” Sinha told us. 

Dig deeper

While the rise of generative AI has captured headlines, a more subtle yet equally impactful transformation is reshaping the IT landscape. 

• The decline of the traditional Time and Material (TNM) model

The share of TNM contracts has halved to 35% over two decades in the IT industry. 

• Once constituting over 65% of all revenue, the TNM model is now facing criticism, as it allowed tech companies to pass inefficiencies onto customers while profiting from them.

In the words of former Wipro chief and Premji Invest CEO: "It’s (TNM) a wrong economic model".

Apart from TNM, the IT industry has two other broad models: fixed price model and outcome-based model, with many subtypes. The popular model received flak over the years because:

• Clients bore the risk if project costs or the scope of work increased.

However, clients are now going after outcome-driven pricing models as they shift the responsibility to the IT company.

And how can the raging Gen AI be not in the picture in displacing the transition from TNM to other models?

• A recent study showed that Gen AI increases the productivity of senior talent compared to juniors

Dig deeper

It is wildfire, not just fire! 

Pushpa is back on the big screen with its sequel, and it's expected to be 2.5 times bigger in terms of box office collections. 

• This release is a much-needed shot of adrenaline for cinemas that have suffered losses for most of the year

With expectations of a Rs 1,000 crore box office haul, Pushpa 2 is challenging the might of two of India's biggest blockbusters: Baahubali 2 and KGF Chapter 2.

• Exhibitors are hopeful for a turnaround in fortunes, especially on the back of Pushpa 2's success and the Diwali blockbusters Singham Again and Bhool Bhulaiyaa 3

Find out more

• Elon Musk's AI startup xAI plans to expand its Memphis, Tennessee, supercomputer to house at least one million GPUs, the Greater Memphis Chamber said.
  
  
• Google DeepMind has developed an AI model that can predict weather up to 15 days in advance more accurately and faster than current systems.

Spotify's annual rewind is here! 

This year, the platform takes you on a nostalgic trip down memory lane with a new feature: Your Music Evolution!

• Find out which artists you couldn't get enough of

• See how you rank among fans of your favorite artists

Share your musical journey with the world! Find out more

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