Vikas Agarwal , OnePus India General Manager revealed the firm is presently in the process of negotiating supply deals with local manufacturers as part of its efforts to become more involved in the “Make in India” initiative promoted by New Delhi as a way to encourage consumer electronics firms to invest more resources in the South Asian country.
“We are finalising our plans on local component manufacturing or sourcing. If the plans become successful, India can potentially become our global manufacturing hub with handsets getting exported from here,” said Agarwal.
The Chinese original equipment manufacturer is already assembling its smartphones in India so as to avoid heavy duty fees on its products but sourcing the majority of their components from local factories would allow the company to additionally lower its costs and improve its profit margins.
OnePlus smartphones sold in India are presently being assembled by the same Noida-based vendor that assembles OPPO-made devices.
OnePlus operates in the Rs 30,000-plus smartphone segment, which is growing at 30% annually and accounts for 3.5% of the country’s total smartphone market.
According to IDC, OnePlus was the second largest brand in the premium segment after Apple in the October-December quarter, thereby becoming the largest premium Android smartphone maker in India. As per Counterpoint’s last quarter result, Apple had 47% share in the premium segment followed by OnePlus with 25% share and Samsung with 17.6% share.
OnePlus overtook Samsung in the July-September quarter. India is the largest market for OnePlus, having accounted for over 35% of its global sales of $1.4-billion in 2017, when its global sales had doubled.
At a time when global smartphone shipments are losing momentum, India is becoming an ever more attractive proposition for most OEMs as its record-breaking growth is still leading to tens of millions of handsets being sold on a quarterly basis.