Over the past few years, Samsung has been condemned for saving costs. It is criticized for not bringing up hardware improvements to its mobile devices as well as smartphones with each passing year. Anyways it now appears that the rival Chinese brands are going to adopt a similar strategy that would save them costs in the near future.
On Saturday an event was held by OnePlus in China. The event was organized to celebrate the 9th anniversary of the smartphone company. During the event, a few significant announcements were made. One of the major announcements was the strategic partnership of OnePlus with OPPO. Though, OnePlus is already a part of OPPO. Given this news, the community is doubtful about how this partnership is different. Since OnePlus relies on OPPO’s R&D resources, technologies, and manufacturing facilities.
In addition to this, the company advocated its future plans as well. OPPO is going to invest CNY 10 billion (around $1.43 billion) in OnePlus over the span of the next three years. However, this amount is not considered given the standard smartphone industry investments. The companies have worked on a dual-brand strategy. Given this strategy, Oppo will focus on the development of mid-range and affordable phones while OnePlus will develop high-end and flagship smartphones.
Furthermore, OnePlus declared that future high-end smartphones will have a zero net profit margin. Thus bringing the best features as well as high quality concerning the price segment. However, this strategy may not be that useful in the long term specifically when it comes to firms like Apple and Samsung. Whereas Apple and Samsung have a huge presence worldwide and sustainable marketing budgets.
In China, OnePlus is moving back to its original tune of selling smartphones via online stores only. Thus, going towards more cost optimizations. Additionally, OnePlus smartphones would be repaired at OPPO’s service centers. Besides this, the Community app of OnePlus has been relaunched. Thus, focusing on user discussions will help to improve and design the products as well as features.
Will this strategy affect Samsung?
The zero profit margin of OnePlus in high-end smartphones could result in smartphones with extremely specific heavy smartphones in contrast to Samsung. However, Samsung is adopting a different strategy. The strategy by Samsung focuses on feature-rich software, a consistent user experience, a seamless environment of services and products, and robust software updates. This strategy could likely fail OPPO and OnePlus to compete with Samsung.
Furthermore, recently it was reported that Samsung is going to focus on bringing quality features and hardware by the next year. Where the new devices will arrive by 2024. It has decided to stop the cost-cutting strategy in its plan.
Although, Samsung won’t be affected by the new strategy of OPPO and OnePlus in markets like Europe and North America. however, it could be posed with some difficulties in markets like India and China regarding flagship smartphones. That is why Samsung must be careful to be in the safe zone.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.