‘BSTRISOB IBS Center for Management Research OnePlus: The Chinese Smartphone Start-up Targets India This case was writen by Syeda Masceha Qumer and Debapratim Purkayastha, 18S Hyderabad. It was compiled fom ubised sources, ads irtended to be used asa basis lass discussion rather than lutte ether eflectvecrineectve handing of a management etuaton (© 2017.18S Center for Management Research, Allights reserved. To order copies cll +91 9640701313 of wile lo IS Center for Management Research (CMR) Donthanapally, Sankarapaly Road, Hyderabad S01 203, Telangana. India or emo: efOSicrn www.iemrindia.orgenyisd OnePlus: The Chinese Smartphone Start-up Targets India OnePlus, a Shenzhen, China-based technology start-up whose sleek smartphones with their kille ice tags and by-invite exclusivity made a splash in 35 countries globally in late 2013, had trained ights on India, the world’s fastest-growing smartphone market. In India, OnePlus positioned elf to appeal to users of high-end phones and undercut rival products on price, despite closely matching them on specifications. The company, which was launched in India in December 2014, had sold close to one million smariphones in the country by the end of 2015. Going forward, it planned an aggressive expansion in India, considered to be one of its biggest markets. According to Peter Lau’ (Lau), one of the co-founders of OnePlus, “India is a cast-sensitive market but if we make the best phones we believe the market will soon catch up to our prices. Whatever it takes to invest and win here, that is what we will invest. India is now a fot like China... we expect more ‘and more Indian customers to want to buy premium phones, like Chinese and American customers am Despite a promising start in India, the company faced some challenges in the country such as intense competition, low smartphone penetration, concerns related to intellectual property rights, and price sensitive Indian consumers. OnePlus had a long way to go to catch up with the market leaders in India including home grown players as well as Chinese smartphone brands that offered high-end phones at affordable prices, said analysts. Whether OnePlus would be just a flash in the pan or rule the Indian smartphone market going forward remained to be seen, they added. ABOUT ONEPLUS OnePlus was co-founded in late 2013 by former OPPO! executives Lau and Carl Pei? (Pei). With its “Never Settle” motio, OnePlus aimed at providing the best possible technology to users lobally by creating elegantly designed smartphones with premium build quality and high performance hardware. The business model of OnePlus was built around razor-thin margins that focused on selling phones on low margins, monetizing instead on software and services and applications. OnePlus minimized overhead costs by manufacturing fewer units and limiting its inventory. It also dramatically cut down on marketing spend and instead relied on online marketing and community interaction on social media platforms to help spread the word about its produets. Reportedly, OnePlus spent only USS300 on marketing in 2014 The company’s limited product portfolio included flagship products such as the OnePlus One, the OnePlus 2, and the OnePlus X. OnePlus announced that its fourth smartphone, the OnePlus 3, would be launched in the second quarter of 2016. The company employed an unconventional invite-only system that limited buyers to those who had received an invite from the company rectly or from someone who had already purchased the device. Industry observers felt that the OPPO is a Chinese global electronics and technology service provider that sells mobile electronic devices in over 20 countries globally Before starting OnePlus, Carl Pei worked for Chinese electronics manufacturing firms Meizu and OPPO. AtOPPO, he worked as director of new markets for nine months.roy (OnePIus: The Chinese Smartphone Startup Targets India Coca) ite system allowed the company to keep tight control over inventory and manufacturing costs and manage risks and created an aura of exclusivity around OnePlus products, making customers crave its products. OnePlus was able to make a mark in the difficult global smartphone market where it competed with the likes of Apple Inc. (Apple)' and SAMSUNG (Samsung)' by ereating high-end devices Which were sold at half the price of the most popular models on the market like the iPhone 6S and Samsung Galaxy $6. The company generated revenues of US$300 million in 2014. As of 2015, OnePlus shipped its products across 35 countries including China, the US, Canada, the UK, India, and Germany. In the first nine months of 2015, OnePlus reportedly sold about 13 million units worldwide with 57% sales coming from the Asia Pacific region. Unlike other Chinese smartphone makers that focused on the domestic market before going global, OnePlus from the outset began focussing on foreign markets. Aiming to build a global brand, Lau and Pei positioned OnePlus as a global company with a global mindset. Despite having its roots in Shenzen, OnePlus began its journey as a global company, originally launching its flagship product Oneplus One in 16 countries across North America, Westem Europe, and East Asia. Since then, the company had been selling its products in various global markets. Reportedly more than 60% of the company’s sales were outside China in 2014. But OnePlus also drew criticism for selling its phones by invitation and making its products difficult to buy. According to observers, the invitation based sales model actually slowed down the growth of the company as some customers did not want to wait so long to purchase the device and consequently switched to other brands. In order to match user demand, OnePlus gradually relaxed the invite system for all its smartphone models. Pei said that once the company felt secure about the demand for its products and its production arm was able to keep pace with demand, it would do away completely with the invite system and start with open sales. However, no timescale was given for this move. According to analysts, going forward, the challenge before Lau and Pei would be how to sustain lower prices, make profits, and achieve international success. ONEPLUS ENTERS INDIA India, with its population of 1.2 billion as of 2014, was the world’s fastest-growing smariphone market, A growing middle class with an increased disposable income and a surge in the population ing the internet had tumed India into a lucrative market for Chinese players who offered cheaper alternatives to high-end iPhones or Samsung devices. Initially, OnePlus did not intend to enter the Indian market. However, it noticed that thousands of OnePlus devices were being shipped from China and the US to India, Moreover, when the company organized a fan gathering in India in August 2014, it was surprised to find that around 70% of the attendees already owned OnePlus devices. Sensing the demand for its product in the country, the company launched its fist flagship device, the OnePlus One, in India in December 2014. Priced at Rs. 21,999 (US$328), OnePlus One boasted of an industry leading design, superior build quality, and top of the line specifications at a disruptive price. It ran on open source software called Cyanogen, a modified version of Android developed by Cyanogen Ine * Apple Inc. is a leading US based technology company that designs, develops, and sells consumer electronics, computer software, and online services. Its products include the iPhone, the iPad, the iPod, the Mac and the Apple Watch. inthe fiscal 2015, Apple's worldwide revenues totalled USS23 billion SAMSUNG js a South Korean multinational electronics company engaged in consumer electronics, information technology and mobile communications, and device solutions businesses worldwide. As of March 2015, it was the leading smartphone maker inthe world. Cyanogen Inc. develops Cyanogen OS, an open source mobile operating system built on Android. In January 2014, OnePlus entered into a partnership with Cyanogen Inc to provide the Android ROM on the 2roy (OnePIus: The Chinese Smartphone Startup Targets India Coca) OnePlus tied up exclu to sell the device online in India. In line with the company’s global invite system, customers received India-specific invites by registering on the company’s website or from someone who had already purchased the handset. After receiving the invite, they could purchase the device exclusively on Amazon.in. The company’s core strategy in India was similar to that in other geographies. OnePlus eyed the mid-range phone sezment in India and its target customers included the young working class and technology enthusiasts. Initially, the company’s expectations from the Indian market were not very high as it observed that the mid- range phones market in India was very small compared to the iow-price segment where sales were high. "Our collaborators Amazon India, through whom we were to sell online, projected an initial sale of 20,000 devices. We told them, let's aim for $,000. We debated this for nwo months. Finally ‘Amazon picked up 20,000 devices and paid us upfront so that we would have no risk. The phones ‘sold out instantly, that was our launch. After that, we saw that the demand was way bigger than we expected. India has exceeded our expectations. We realize now that market data is not always trustworthy. Going to a market and experiencing itis way beter, ™ said Lat In July 2015, the company launched its second smartphone One Plus 2 in India at a price of Rs.22,999 (US$359) for the 16GB version and Rs.24,999 (US$390) for the 64GB version. The OnePlus 2 was built using the Oxygen0S, the operating system developed in-house by OnePlus According to industry observers, the OnePlus 2 adopted state-of-the-art technology with high specifications and a beautiful design, This was followed by the launch of its third smartphone, the OnePlus X, in December 2015. The phone, featuring a compact display and a new range of premium build materials, was available at a price of Rs. 16,999 for the Onyx version and Rs. 22,999 for the Ceramic version, In order to match the user demand, OnePlus gradually relaxed the invite system for both OnePlus One and OnePlus 2. Starting February 5, 2016, the OnePlus X too was made invite-free in India. From June 2015, OnePlus devices were available for purchase on leading e-commerce site Flipkart” as well OnePlus set up a local office in Bengaluru headed by OnePlus India general manager Vikas Aganwal (Agarwal). In addition, the company also opened service centers across some major cities in India. India was the first country outside of its headquarters to have a local team and also the first region to provide comprehensive pan-country localized service centers offering phone and walk-in support to customers around the country. The company reportedly even relocated some of its key senior personnel to India in order to study the local market and connect with OnePlus fans across the country. TEETHING TROUBLES OnePlus initially faced some operational challenges in India, On December 16, 2014, the Delhi High Court ordered OnePlus to stop the shipping and sales of OnePlus One smartphones in India, acting on a complaint from Micromax Informatics Ltd (Mieromax), which claimed that OnePlus had infringed on its exclusive right to use the Cyanogen OS software and trademark in the country. Micromax stated that OnePlus was selling devices embedded with Cyanogen OS in India despite knowing that Micromax had an exclusive partnership with Cyanogen that prevented any other company from selling Cyanogen-powered d including OnePlus. Cyanogen clarified that its agreement with Micromax superseded all prior agreements and that it would not roll out ‘OnePlus One. However, the partnership came to an end in April 2015 after Cyanogen signed a deal with Indian smartphone maker Micromax that prevented OnePlis from shipping its phones to India with Cyanogen OS installed. ‘Amazon India isthe Indian subsidiary of Amazon.com, In., the world’s largest e-taile. Launched in October 2007, Flipkart is one ofthe leading e-commerce marketplaces in India, Micromax Informatics Limited is one of the leading consumer electronics companies in India. It sells around 23 million mobile devices every month through 125,000 retail outlets in India. 3ram OnePlus: The Chinese Smartphone Start-up Targets India Coca) Cyanogen updates to OnePlus One devices sold in India. On December 25, 2014, the Dethi High Court granted interim relief to OnePlus by lifting the ban on the grounds that Micromax, which ‘manufactured low-end phones, was not in direct competition with OnePlus that targeted the mid range segment. In May 2015, the two parties resolved the issue and Micromax withdrew the legal case. One Plus said its customers in India would continue to receive software updates from Cyanogen, in line with users in other markets. The Chinese smartphone maker was also heavily criticized for its customer support services in India, Allegedly, customers who faced quality issues with their handsets were left stranded for over a month due to non-availability of spare parts and the subsequent delay in the arrival of the parts led to the lapse of the warranty period of their devices. In order to solve this problem, OnePlus rolled out a buyer protection program wherein a complimentary three-month extended warranty was offered on its devices in case a service related issue was not resolved within 15 working days at its support centers. In 2015, OnePlus partnered with global service companies such as HCL Infosystems Ltd’, B2X Care Solutions GmbH", and Regenersis'' to establish a network of over 70 service centers in India. For remote locations, a complimentary pan-India pickup and drop service was also offered. To ensure a great user experience, the Chinese startup launched an insurance scheme on OnePlus devices which covered damage suffered during accidents and any damage to the screen. To avail of this scheme, the user had to pay Rs. 1,200 annually for OnePlus 2 and Rs. 1,000 for OnePlus X. However, the company was criticized for the delay in the shipping of OnePlus 2 in India, Customers expressed their disappointment saying that they would rather buy a handset elsewhere than wait indefinitely. The company was reportedly caught off guard by the demand for the OnePlus 2 in the Indian market and despite its best efforts to meet the demand it was constrained by a few supply chain issues and that led to the delay ‘MAKE IN INDIA’ S RATEGY To tackle supply chain issues, cut production costs, and cater to the fast growing demand for its products in India, OnePlus decided to manufacture its devices locally in India. In October 2015, the company partnered with Foxconn Electronics Inc." (Foxconn) to assemble smartphones in India atthe latter's facility in Sri City"” in Andhra Pradesh, Production was expected to start by the end of the year with the OnePlus X. The proposed facility would have a cumulative peak capacity of producing up to 500,000 units per month ~ flexible enough to meet local demand and would likely generate direct employment for over 1,000 full time workers. The first batch of smartphones produced from Foxconn’s facility was expected to go on sale by late January 2016. Lau said local production would make OnePlus’s operations more efficient in terms of cost and working capital requirements and also lower prices and make OnePlus products available for sale faster than before. "Producing smartphones in India is one of the most important decisions that we have made so far at OnePlus, and we are thankful to the Government of Andhra Pradesh and Foxconn for helping us make this happen. India being one of our biggest markets worldwide, we ‘are committed to a long term sustainable growth path. This move will strengthen our presence and HCL Infosystems Ltd. is one ofthe leading distribution and IT services and solutions companies in India, BOX Care Solutions GmbH is a leading provider of customer cate solutions for electronic devices t0 ‘manufacturers, insurance providers, mobile network operators and retailers globally Regenersis isa global provider of diagnostics and repair services to the consumer electronics industry. Foxconn Electronies Inc isthe largest contract electronics manufacturer in the world. Foxconn assembles ‘Apple's iPhones at its facilities in China. The components for OnePlus’s devices in China were supplied by Foxconn, Sri City is a planned integrated business city located in the Indian state of Andhra Pradesh.roy (OnePIus: The Chinese Smartphone Startup Targets India Coca) help us step up momentum in India,’ said Lau. Experts sad that the move would help the Chinese firm avoid import taxes, strengthen its presence in the thriving Indian smartphone market, and support the ‘Make in India’ initiative of the Indian Government to boost manufacturing in the country EXPERIENTIAL MARKETING OnePhus’s marketing tactic was to sell its phones to customers exclusively through invites that were handed out through various promotions and contests on social media networks, while OnePlus owners could also share invites with their family and friends. OnePlus built up hype around its products even before they were made. The product ideas were made public on the company’s forums accompanied by technical discussions on the kind of product people preferred. ‘The company used online platforms like forums and blogs to gather input from users regarding the product. This word-of-mouth strategy earned OnePlus a cachet among technology enthusiasts and enabled it to build a community of committed customers who generated online interest about the brand and its products. In June 2015, OnePlus appointed Karan Sarin (Sarin), former director of the Gift Cards business at Flipkart, as head of marketing for the Indian operations. OnePlus adopted the experiential marketing strategy in India. In October 2015, it partnered with an Indian cab hailing service, Ola Cabs, wherein users through the cab’s mobile app could request a free demo of OnePlus 2 on their doorstep, just as they would make a request for a cab. Just for a day, on December 8, 2015, OnePlus launched an offer across seven Indian cit customers could purchase its OnePlus X handset through the Ola mobile app without have it delivered at their doorway within 15 minutes of the order being placed. In addition, in September 2015, OnePlus tied up with low-cost air carrier AirAsia'® to hand out invites for OnePlus 2 smartphones to select passengers who travelled with the airlines. The offer was valid on ticket bookings made between September 30, 2015, and October 9, 2015, on airasia.com. OnePlus 2 invites were given to 1,000 AirAsia flyers through a lucky draw. According to Sarin, “With an ‘invite’ and ‘online’ only strategy there is a limited scope of experiential targeting. Our idea was {0 tie-up with young and lke minded companies to create a demanding buzz. The brand is for the more tech savvy and worldly segment of consumers, that’s growing rapidly. Since we are a community focused company, we are looking forward to have more product ambassadors on board through these experiential initiaives.”™ OnePlus also set up pop-up stores at some major malls in Indian cities such as Pune and Bangalore and planned to open more such stores in other cities too. Going forward, the company planned to invest in community and digital marketing and target young tech enthusiasts to create online forums in various cities in India, According to Agarwal, “The great thing about OnePlus, as a ‘company, is that we follow a local for local strategy without hurting the core ethos of the brand which is “Never Settle”. The strategy is indeed to work with local communities that use our phone, regardless of their economic background, and we know that they are young and persuasive because they love technology. Our target is clearly to go to co-working spaces, Universities and city based forums. So the local user is our champion and there are so many requests from young people who want 10 promote the benefits of using the OnePlus One around their community. This is a great time for marketing: we get to understand the behavior of our user base and this user base wants to promote our phone over several forums be it online or offline. The power of India lies in the power of its youth and this is the segment that can create viral marketing. See, as a startup, we have to keep costs extremely low." “The *Make in India” initiative was launched by Indian Prime Minister Narendra Modi in September 2014 in order to support local manufacturing and transform India into a global design and manufacturing hub. AirAsia is @ Malaysia based low cost airline.roy (OnePIus: The Chinese Smartphone Startup Targets India Coca) AHIT IN INDIA In 2014, India was OnePlus’s fourth-largest market, outside of China, the US, and Europe. More than 60% of the company’s sales in 2014 were outside China including 32% in Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Portugal, Spain, Sweden, the UK), 22% in North America (Canada, the US), and 7% in India (See Exhibit). In 2014, in just ‘one month of operations, India contributed 79% of OnePlus’s overall sales, even without any major promotional activities. By the first half of 2015, OnePlus sold over 250,000 devices in India. In the frst quarter of 2015, 40% of the company’s global sales were reported from India. Analysts attributed the success of OnePlus in India to its great products, solid marketing, and a disruptive pricing strategy that upset competitors. Reportedly, the company sold 15,000 units of the OnePlus 2 in the first twelve minutes of the open sale held on Amazon India on October 14, 2015. However, the company missed the target of selling one million units of its devices in India owing to supply chain issues and insufficient stock. It was reported that in the first two months of the launch of OnePlus 2, the company lost about 6-8 weeks of sales due to non- lity of stock, CHALLENGES In February 2016, India surpassed the US to become the second largest smartphone market after China in terms of active unique smartphone users with the total base crossing 220 million users” (See Exhibit I). This massive growth in smartphone users in the country attracted the attention of elobal players. Cashing in on the craze for smartphones in India, reportedly over twenty mobile phone manufacturers launched new devices in 2015, taking the total number of smartphone brands in the country to 431. The market became even more lucrative for overseas players after the Indian government announced large seale incentives for manufacturing smartphones locally. In 2015, over 100 million smartphones were shipped to India, 23% more than the previous year Samsung with its aggressive marketing strategy and product promotion remained the market leader with a market share of 25.7%, followed by home grown players Micromax and Intex Technologies (India) Ltd"® (Intex) (See Exhibit 11). Local players such as Mieromax, Karbonn Mobiles”, Intex. and Lava International Limited" with their affordable range of devices packed with features appealed to the growing mid-level income population in India, said industry observers. Moreover, the entry of several Chinese smartphone makers like Xiaomi Ine.” (Xiaomi), Lenovo,” OPPO, and Huawei Technologies Co., Ltd.”' that offered budget smartphones (ess than US$ 200) with high-end features prompted Indian consumers to shift from feature phones to smartphones and made the competition in the Indian smartphone market tougher. The most prominent among, the Chinese brands that created waves in the Indian smartphone market was Xiaomi, Xiaomi entered the Indian market on July 15, 2014, with the launch of the Mi 3 smartphone that had cations comparable to high-end smartphones at almost one-third their price. The phone was Incorporated in 1996, Intex manufactures smartphones, consumer durables, and IT Accessories. Its Aqua range of affordable smartphones were a hit in India. Founded in 2009, Karbon Mobiles manufactures low-cost affordable smartphones in India. Lava Intemational Limited is one the leading mobile handset companies in India offering various smart phone models at multiple price points Xiaomi Ine. is a leading Chinese electronies company that designs and develops smartphones, mobile apps, and related consumer electronics. Headquartered in Beijing, China, Lenovo is one of the leading multinational technology companies. Headquartered in Shenzhen, Guangdong, Huawei is one of the biggest global information and ‘communications technology (ICT) companies.roy (OnePIus: The Chinese Smartphone Startup Targets India Coca) sold exclusively online on Flipkart through flash sales whereby availability was limited to short time periods. The online sales strategy cut down marketing and distribution costs and allowed Xiaomi to sell feature-rich phones at low prices, said experts. Barely a year after its entry in India, Xiaomi established itself as one of the largest smartphone vendors in the country. Moreover, with the Indian government's ‘Make in India’ initiative, Chinese smartphone makers began flooding the Indian market and further intensified the competition in the market. In January 2016, another Chinese smartphone maker, LeEco (earlier known as LeTV), forayed into the Indian smartphone market with the launch of two devices — Le Is and Le Max. It aimed to dominate the Indian market with its range of economical de While India’s smartphone market was dominated by Android OS powered smartphones, Apple products were considered as a coveted status symbol in the country. iPhones held huge aspirational value among Indian customers. For the year ended March 31, 2015, Apple generated close to USSI billion in revenue in India and had less than a 2% share of the Indian smartphone market Sensing a huge market for its products in the country, Apple stepped up its focus on the Indian market and was rapidly pushing sales by ramping up advertising, expanding its distribution network, offering discounts and buyback schemes, arranging interest-free phone loans, and lowering prices, moves that analysts felt was unusual for Apple devices. In December 2015, Apple cut the price of its iPhone Ss by half in India with the 16GB iPhone Ss available at Rs.24,999 (V/S$370), down from Rs44,500 (US$665) in September 2015." According to analysts, the new price cut made the iPhone 5s a strong contender in the mid-range segment and strengthened Apple’s presence across different price bands. Analysts said this was a cause for concern for OnePlus as its devices were among the leading mid-range Android smartphones. Apple also planned to open its own retail stores in the country. In the first quarter of 2016, iPhone sales in India increased by 76% compared to the corresponding quarter of the previous year." Apple shipped nearly 800,000 iPhones in the last quarter of 2015 in India, a significant number considering that the total number of iPhones shipped in India for the entire fiscal year 2015 by Apple was 1.7 million iPhones US-based mobile handset vendor Motorola Mobility LLC2"s smartphones like Moto X, Moto G, Moto E too were very successful in India, Reportedly, Motorola was one of the first companies to offer high quality phones at affordable prices and set a trend for the online-only smartphone sales model in the country. Commenting on the competition in the Indian smartphone industry, Agarwal said, “The reason why brands are more bullish about India is because jn market compared to global markets which are more saturated now. Many people here are still using feature phones.” Despite the growing demand for high-end smartphones, some Indian consumers still remained price sensitive while purchasing smartphones, said industry observers. The availability of cheap budget smartphones could affect the market for mid-range phones such as those offered by OnePlus, they opined. Some experts felt that the OnePlus should invest in some high-impact marketing in order to reach more people, while atthe same time ensuring that the prices of its devices did not rise. At the same time, OnePlus had to battle with the “Made in China’ stigma in the Indian market Where some customers perceived Chinese smartphone makers as companies that manufactured cheap iPhone knock-offs. In addition, localization, low smartphone penetration, and intellectual property concems were some of the challenges faced by OnePlus in the Indian market. Commenting on the challenges faced in the Indian market, Lau said, “From the product point of view, ifa product is good. its good globally. But market-wise, if you want to go to India, you have to learn about the Indian market. You have to have a good understanding of Indian users’ lifestyle, culture and customs so we can better cater 10 them in terms of software and services. Yesterday, 1 was driving from the office 1 a service center and was stuck in traffic for an hour. In India, going . In October, 2014, the Lenovo Group acquired Motorola Mobility from Google Ine for about USS2.91 billion.=e (OnePIus: The Chinese Smartphone Startup Targets India Coca) to a service cemer could be a bad user experience. We had a thought that we should provide doorstep service since the cost of labor is lower here. We cannot imagine doing that in Europe or North America.” THE ROAD AHEAD According to a study by leading technology company Cisco Systems Ine. India was expected to have a smartphone user base of over 650 million by 2019.™* Going forward, OnePlus aimed to gain a larger share of the Indian smartphone market. According to the company, India was one of its key focus markets and would be one of the first countries to see the company"s newest products in the future. OnePlus planned to set up a local engineering and product team to focus on localizing software forthe Indian market. It also planned to expand its local team in India and establish its first R&D center outside China in the ety of Bengaluru. It planned to focus on the ‘Make in In initiative and according to the company, by December 2017, over 90% of the smartphones that it intended to sell in India would be manufactured locally. The company also planned to scale up its service centers across the county. OnePlus wanted to focus on local content in the future and invest in specific software produets and make local investments in India. The company had reportedly sent its product managers to India to analyze what it could do specifically for the Indian market. Commenting on the company's strategy to stay afloat in the highly competitive and price sensitive Indian market, Lau said, “No brand has been built on a better price than other brands. We are going to focus on our core ‘competencies, which are product and service. We will invest in these areas. Right now, Rs10,000 or below or Rs15,000 or below is the sweet spot but what about it in 10 years? In the next 10 years, we believe that the premium product space will grow and that is the space in which we want to be in the long term." Whether OnePlus would be able to undercut rivals and make a mark in the highly competitive Indian smartphone market or just remain another of the Chinese smartphone brands flooding the Indian market, was the question, analysts said.COnePius: The Chinese Smartphone Stat-up Targets India Coca) Exhibit 1 ‘OnePlus Global shipments (2014) na “= 2s arope ‘Source: OnePlus Annual Report 2014 Exhibit IT ‘Smartphone Users in India f° Total Number of Smart Phone Users in India Source: www.dartconsulling.co,in/DARTBlogs/e-commerce-indusiry-current-online-retail-<-commerce- ‘market-scenario-in-india Exhibit 111 Smartphone Shipments in India Rank ‘Company ‘Smartphone Shipment Share (%), FY2015 1 ‘Samsung 25.1% 2 | Micromax 16.1% 3 Intex 10.2% 4 | Lenovo 8.6% 3 [Lava 6.0% Others: 33.4% Total 100.0% ‘Source: ww counterpoiniresearch com/indiahandsetmarket2013(OnePIus: The Chinese Smartphone Startup Targets India sly worked as Vice president of OPPO and was in charge ofthe company's Blue-ray division “James Crabtree, “Chinese Smartphone Maker Oneplus Dials into Indi 2016. Sarita Rai, “India Has Exceeded Our Expectations: OnePlus Founder & CEO, Pete Lau,” ‘www. forbes.com, December 9, 2015, ‘“OnePlus, Foxconn to Assemble Smartphones in Andhra Pradesh,” hitp:/indianexpress.com, October 14,2015, * Priyanka Nair, “OnePlus India Dials in an “Experiential” indiatimes.com, October 19, 2015, ‘“OnePlus Going Hyper Local in India,” htp://businessworld.in, April 6, 2015, Shruti Dhapola, “India Beats US to Become the Second Largest Smartphone Market: Counterpoint hhup:/indianexpress.com, February 3, 2016. “David Gilbert, “iPhone SS Price Cut by Half in India: Can Apple Ine. Dominate World's Fastest- Growing Smartphone Market?" www.ibtimes com, December 14, 2015, ‘Apple QI Results: As China Weakens, Sales Rise 76 per cent in India,” htp://indianexpress.com, January 27, 2016 * Abhijit Ahaskar, “Enter the Dragon: Chinese Phones Swamp the Indian Market,” www livemint.com, June 12, 2015, “ Sartha Rai, “India Has Exceeded Our Expectations: OnePlus Founder & CEO, Pete Lav,” ‘www forbes.com, December 9, 2015, “India to Have 651 Million Smartphones, 18.7 Million Tablets by 2019." hhup:/artices.economictimes.indiatimes.com, February 3, 2016. “Sayan Chakraborty, “OnePlus 3 to be Launched in Second Quarter of 2016: Pete Lau, ‘www livemint.com, February 25, 2016. wow.fl.com, February 25, Code,” hitp:/brandequity. economictimes.