Analysts, Telecom News, ET Telecom

NEW DELHI: Premium handset brand OnePlus said it will continue to operate independently in India under Oppo after the interaction. Analysts said further integration into Oppo would help OnePlus take advantage of the vast offline reach of the first in India, especially for Internet of Things (IoT) businesses, but any movement to change the marketing strategy will have a negative impact on the positioning of its brand.

OnePlus and Oppo joined research and development teams in China last year after Pete Lau, founder of OnePlus, took on additional responsibilities to oversee the two brands’ product strategy.

“Since then, we have integrated a number of our teams with Oppo to better streamline our operations and capitalize on additional shared resources. After seeing the positive impact of these changes, we decided to further integrate our organization with Oppo, ”Lau said in a blog post on Wednesday.

With this deeper integration with Oppo, Lau said OnePlus will have more resources at their fingertips to create “better products” and also allow the company to be more efficient. He also clarified that the OnePlus brand will continue to operate independently.

In a statement to ET, the spokesperson for OnePlus India said OnePlus will continue to operate as an independent brand within Oppo. “OnePlus products and regional markets will work as usual. In India and other markets where the two companies operate, we will continue to compete against each other in the same way as before.”

Prabhu Ram, head of industry intelligence group at market intelligence firm CyberMedia Research (CMR), said the move will allow the OnePlus brand to fuel its next wave of growth, as it shifts from a challenger positioning to a general public brand positioning.

“By harnessing and leveraging Oppo’s R&D capabilities, OnePlus will be able to achieve economies of scale and potentially ready to grow better in the era of connected life with smartphones and IoT,” Ram added.

Tarun Pathak, research director at Counterpoint, however, added that there is a good possibility that the two companies will end up overlapping their efforts on the software and services side as the hardware becomes increasingly difficult to differentiate. For example, the OnePlus 9 series already uses Color OS in China.

Pathak added that as Oneplus is a high-end brand, it took a long time to gather the required installed base which can now be connected well back with Oppo. He warned, however, that OnePlus has become a strong premium brand in India and any change in its approach to go to market could hamper its growth.

Navkendar Singh, research director at IDC, supported Pathak’s comments and said that Oppo’s mainstream IOT game will become stronger with the success that OnePlus has seen in this segment.

“This move will certainly help OnePlus in terms of faster operating system updates, especially by leveraging Oppo’s R&D. In addition, it could perhaps also merge the high-end segment of the two. brands. Oneplus and Oppo have the Nord and Reno series respectively, ”Singh said.

Oppo and OnePlus both have their own R&D centers in the country. In May, Lau told ET that OnePlus was continuing its previously announced investments worth Rs 1,000 crore for research and development (R&D) in India despite its R&D team merging with Oppo at the group level. “The Indian R&D team of ‘OnePlus’ is a very important pillar for business in India and global operations,” Lau then said, adding that the Indian facility will be the company’s largest research center in the world. world by 2022.

OnePlus saw its overall smartphone shipments to India increase 200% year-on-year in Q4 2020 and 300% in Q1 2021, according to a report from Counterpoint Research.

As part of the IoT strategy, OnePlus will bring more new devices to Indian consumers this year. The company also wants to manufacture its Internet of Things (IoT) products locally and thus increase the total percentage of products made in India.

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