OnePlus to move servicing operations to India

The Chinese smartphone maker recently announced plans to set up its second global headquarters and a research and development centre in the nation that contributes around 33 per cent of total revenue

August 6, 2018

The decision comes after the Chinese smartphone maker’s strong performance in India’s vast and fast-growing premium handset market

The move will result in OnePlus shutting down servicing bases in the Philippines and other places and doubling Indian staff strength to around 170

India now ranks second, globally, in the manufacture of mobile phones, with the count of factories rising from just 2, to 120, in four years’ time

The second headquarters, servicing and R&D bases in India will help the company concentrate on developing markets outside China

OnePlus is planning to move its global servicing operations to India, according to a report by the Hindu BusinessLine on August 5, citing the company’s general manager for India, Vikas Agarwal. The decision comes after the Chinese smartphone maker’s strong performance in India’s fast-growing premium handset market. The move will result in OnePlus shutting down servicing bases in the Philippines and other places and double the company’s staff strength in India currently measured at 85. The announcement comes a month after OnePlus said that it would set up its second global headquarters in India, along with a research and development (R&D) centre. The second headquarters, servicing and R&D bases in India will help the company concentrate on developing markets outside China.

“India is the biggest market for us not just in terms of current sales but also from a potential opportunity perspective. We already have more than 40 per cent share of the premium smartphone market here. Going forward, India will become a service hub for the global market,” Mr Agarwal told BusinessLine. OnePlus’ growing capacity in India will not just internalise solutions for local sales but support export from the country as well. This is crucial as India, one of the world’s fastest-growing mobile phone market, contributes around 33 per cent of the company’s global sales. The Shenzhen, China based company had entered India in 2014 and has been manufacturing in the country since 2015. Currently, OnePlus is the process of doubling its service centres to 25, while setting up five ‘experience zones’ across India.

The company’s competitively-priced premium phones have given stiff competition to rivals in the Indian smartphone market. The company hopes that an improved outreach will unlock new business opportunities in the 1.3 billion-strong market. Currently, Chinese smartphone brands such as OnePlus, Vivo, Oppo control the majority of the Indian consumer base and have sought to secure their local presence with increased investment. The mobile industry is expected to contribute US$ 217.37 billion to the Indian economy by 2020. Meanwhile, Government of India has launched a phased manufacturing programme (PMP) aimed at adding more smartphone components under the ‘Make in India’ initiative thereby giving a push to the domestic manufacturing. Besides India, Oneplus markets in 33 countries.