OnePlus on the Brink Amidst Declining Sales and Strategic Setbacks
OnePlus, once a prominent name in the smartphone industry, is reportedly facing a precarious future as multiple challenges converge to threaten its continued operation. Recent reports suggest that the company is experiencing a significant downturn, with falling shipments, office closures, and the cancellation of key products signalling a difficult road ahead. This troubling situation has been highlighted in an investigation by Android Headlines, which drew on insights from current and former employees to paint a stark picture of OnePlus’s current state.
Declining Market Share and Sales Performance
The brand’s sales have taken a notable hit, with figures dropping by over 20 percent in 2024 compared to the previous year. OnePlus shipped between 13 million and 14 million units in 2024, down from approximately 17 million units in 2023. This decline is particularly concerning given that its parent company, OPPO, managed a modest growth of 2.8 percent during the same period. OnePlus’s struggles are especially pronounced in its key markets of India and China, which together account for nearly three-quarters of its sales.
In India, OnePlus’s market share in the premium smartphone segment has plummeted by about 70 percent over the past year, impacted by razor-thin retailer margins and warranty-related issues. Meanwhile, in China, the brand’s share has shrunk from 2 percent to around 1.6 percent by the end of 2024. These declines in core markets are alarming, as they represent the backbone of OnePlus’s customer base.
Operational Retrenchment and Product Cancellations
Compounding these sales challenges, OnePlus has undertaken significant operational cutbacks. The company closed its Dallas headquarters, which managed US operations, in March 2024. Its Palo Alto office now operates with a skeletal team of just 15 employees responsible for the entire North American region. The brand’s relationship with US carriers has also deteriorated, with the partnership with T-Mobile ending in 2023, and its presence in Europe has effectively vanished.
On the product front, OnePlus has reportedly halted development of major upcoming devices, including the anticipated Open 2 foldable phone and the 15s compact model. These cancellations suggest a strategic retreat as the company reassesses its position in a highly competitive market.
Background and Wider Industry Context
In 2022, OPPO committed a substantial $14 billion investment aimed at reviving OnePlus’s fortunes, which included expanding service centres and allowing the brand to sell phones at break-even prices. Despite these efforts, the brand has not managed to reverse its decline. Recent legal troubles have added to the turmoil, with an arrest warrant issued against the OnePlus CEO in Taiwan over allegations of illegal recruitment.
Meanwhile, OPPO has recently made significant changes to its own sub-brands, notably scaling back Realme. This move hints at a broader strategic shift that may leave OnePlus without further support. Industry insiders suggest that while OnePlus is unlikely to disappear immediately, its future is uncertain, and the launch of a OnePlus 16 flagship seems increasingly doubtful.
Looking Ahead
The challenges facing OnePlus are substantial, with declining sales, operational downsizing, and product cancellations all pointing to a brand in distress. Observers will be watching closely to see how OPPO manages its portfolio moving forward and whether OnePlus can stabilise or if it will gradually fade from the smartphone market. The coming months will be critical for the company’s direction and survival.