Chinese smartphone vendor OnePlus faces potential wider sales ban in India

Posted by Admin April 18, 2024 Tech

Chinese smartphone vendor OnePlus faces more disruption at its operations in India, as another major domestic retail industry group is considering a halt to sales of its products in the world’s second-largest handset market.

The All India Mobile Retailers Association (AIMRA), which counts more than 150,000 bricks-and-mortar smartphone retailers across the country, said that its members are also deliberating whether they should stop sales of OnePlus products, according to a letter directed to Ranjeet Singh, sales director of OnePlus India.

AIMRA, which shared its letter with the South China Morning Post, also said it requested a meeting with Singh to discuss its concerns.

The news was first reported earlier this week by independent online tech publication Android Authority.

OnePlus, a unit of smartphone maker Oppo, is in the cross hairs of aggrieved retailers in India. Photo: Shutterstock

AIMRA said OnePlus, a subsidiary of Dongguan-based Oppo, has for years “neglected mainline retailers by failing to provide adequate stocks, offering poor margins, settling claims poorly, failing to deliver commitments and lacking a meaningful relationship with retailers in India”, according to the report. The association said OnePlus did not pursue any product demonstrations, promotions or market visits to support retailers.

“We may also stop the OnePlus business across India if issues are unresolved as the situation remains worse in the general mainline trade with no solace and deliveries on commitments (sic),” according to an excerpt of the AIMRA statement cited in the report.

OnePlus, meanwhile, said in an emailed statement to the Post that the company is working with partners to address the concerns raised by the association, adding that it remains committed “to a strong and prosperous relationship going forward”.

“OnePlus values all the support it has received from our trusted retail partners in the last seven years,” the company said.

Visitors check out the newly launched OnePlus smartphone models at the company’s experience centre in Bengaluru, India, on May 14, 2019. Photo: EPA-EFE

In a letter to OnePlus India, ORA said its members had run into an increasing number of unresolved issues related to selling the company’s products, according to reports from The Economic Times and other local media.

Some issues that ORA raised include alleged low profit margins on OnePlus products, making it challenging for retailers to sustain their businesses. Complex warranty and repair processes were another concern, as these frustrated both customers and retailers, according to local media reports.

ORA covers more than 20 different retail chains – including major retailers Poorvika, Sangeetha Mobiles and Big C – with more than 4,000 stores, accounting for more than 40 per cent of the overall handset business across six southern Indian states.

OnePlus’ market share in India grew 33 per cent year on year in 2023, mainly driven by its broader product mix in the affordable premium smartphone segment and its offline channel push, according to consultancy Counterpoint Research.