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OnePlus Defies Experience of Smaller OEMs in US and Expands Sales in Q420
 
Last week, we reported that US smartphone sales by Apple and Samsung were up, but Motorola, LG, Google, Coolpad and Alcatel saw shipments decline. The demand decrease was more strongly seen in the prepaid market.
But OnePlus was able to grow its channel presence and overall size from a small base by 163% Y/Y. OnePlus was able to achieve this growth by appealing to consumers who became disenfranchised with current premium smartphone offerings. iPhone prices have increased, especially with the iPhone 12, while Samsung Galaxy S20 devices also saw a price increase due to 5G support. Average selling prices (ASPs) for premium smartphones have continued to rise over the last year. While most consumers acquiesced to this market shift, there were still some that preferred to look for more affordable alternatives. OnePlus, a small OEM, despite the strong growth in 2020. Further expansion into prepaid should help OnePlus, especially since the brand was initially known as a value brand that provided strong hardware features. The OnePlus N10 5G already lives up to this promise, providing one of the first smartphones with a 90Hz refresh rate in the sub-$300 price band. Separately, after parting ways with OnePlus, Carl Pei revealed that his new startup, Nothing, will unveil a pair of wireless earphones sometime this summer. The company is being backed by Alphabet’s venture capital division, GV (formerly Google Ventures), which led a $15 million funding round. Its first product will compete with the OnePlus Buds, among other products, and backers like GV no doubt hope that Nothing will enjoy a similar level of success