OnePlus CEO Lau: We're selling the OnePlus One at cost

OnePlus CEO Lau: We're selling the OnePlus One at cost
Peter Lau, CEO of OnePlus, said on Wednesday, that the company is selling the OnePlus One at cost. Lau pointed out that OnePlus doesn't spend money on advertising, deciding instead to sell the phone online using community partners and online marketing. No money is spent getting the OnePlus One to smile through the window at passerby's in the mall. "We are selling the phone at cost," said the executive. "We are able to do that by redistributing our costs to better benefit the user."

Selling a high-end handset at cost and making up the difference by getting device owners to make additional purchases, is part of Google's Nexus act. Google gets a percentage of paid app sales and content purchases. Amazon does the same with the Kindle Fire, making money from apps, content and cloud based storage sold after the tablet is sold at a loss. But unlike Google or Amazon, OnePlus is going to live or die with handset sales, which means that eventually it will have to make a profit from selling its handsets.

Staying away from national advertising is not the way that most of the big names sell their wares. Samsung throws money at ad space, and Apple spots can usually be seen during prime time broadcast television every night of the week.

OnePlus certainly hasn't skimped on parts. With a Qualcomm Snapdragon 801 CPU under the hood and an Adreno 330 GPU working on graphics, the device is going to be zippy in your hands. The OnePlus One scored better than 38,000 on the AnTuTu test, making it a hot model for the spec junkies, and the 13MP Sony snapper on back has an aperture of 2.0, allowing it to take great pictures even in low-light conditions.

If OnePlus can succeed selling its smartphone without television advertising, it will have done something that the major manufacturers could never accomplish. For example, look at HTC. While the company has the wherewithal to pay $12 million to Robert Downey Jr., or hire Gary Oldman to push the HTC One (M8), the ads are so weak that OnePlus does better promoting its phone without spending for a prime time ad or a big name star.


source: TechCrunch via AndroidCentral

Related phones

One
  • Display 5.5" 1080 x 1920 pixels
  • Camera 13 MP / 5 MP front
  • Processor Qualcomm Snapdragon 801, Quad-core, 2500 MHz
  • Storage 64 GB
  • Battery 3100 mAh

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27 Comments

1. ajac09

Posts: 1482; Member since: Sep 30, 2009

dollar is at cost? LOL

9. DEATHSTROKE9

Posts: 399; Member since: Nov 09, 2013

You are too young to be here....

19. Ashoaib

Posts: 3238; Member since: Nov 15, 2013

I dont believe this, they are taking very very less profit but not at cost... the price of 16gb is $299 and the manufacturing cost of GS5 is $299, pete lau mean oneplus1 and GS5 has same cost? Amoled is expensive where as Lcd is almost half of amoled's price

2. sarb009

Posts: 322; Member since: Jun 15, 2011

But your invite costs too much (endless waiting for an invite)

3. Leonis

Posts: 338; Member since: Jan 08, 2014

The phone hasn't yet started selling. Its still early and no invites has been sent. Lets see how it goes before saying endless. Do you want Sony z2, m8, s5 or g3 instead and get it immediately? Go ahead and do it. Spend double the price.

4. sarb009

Posts: 322; Member since: Jun 15, 2011

The16 GB version is already on sale in Canada(64 GB has out of stock status ). You can buy the 16 gb but u need an invite, that's why I am complaining.

24. Leonis

Posts: 338; Member since: Jan 08, 2014

Well its also a new company that can't make phones enough for everyone. Its still not on sale for many countries. Where I live the phone hasn't come ut yet. They needs time to settle in. They said by the end of June or mid July you should be able to get the phone without any problem. With an invite. Or maybe without one? Thats only a few more weeks

25. sarb009

Posts: 322; Member since: Jun 15, 2011

Instead of invite system there could be another option like pre order and tell customers that they gonna get the phone after 1 month or whatever, in this way at least you know you gonna get the phone. Now I want to upgrade my phone and I have almost no chance to get an invite as nobody will give invites to strangers instead of their family members and friends. I prefer to wait over relying on others.

26. Leonis

Posts: 338; Member since: Jan 08, 2014

Yeah they could do that. But without much marketing this is how they market their phone. You still have no clue what you are talking about. OPO has said it clearly that this is their way of marketing which is by words by words. Also again... no invites has been sent out yet in many countries so lets see if people actually share the invites in forum and total strangers. You still talk without any knowledge yet. I am pretty sure people will share invites in the forum because as of now, I don't know many people who actually gonna buy this. Every single one will get an invite to invite more people and there will only be so many from your friends and family who are gonna buy it. Eventually you will have those people share it in forum or OPO will have open sell. Even OPO said that those who want the phone should be able to get an invite without much effort and be able to buy it in late June or mid July. This phone is still mostly known by phone and tech geeks. I can assure you that people will share invites in forum or to total strangers. I know I will because my friends or family still have no idea that this phone exist. Most of them already have an good phone.

27. TheGenius

Posts: 339; Member since: Mar 06, 2014

No.. it doesnt matter how much time they take, they'll NEVER SETTLE! ;)

5. wkm001

Posts: 145; Member since: Feb 04, 2014

I call BS unless they are calculating in R&D, manufacturing, salaries, etc... The price is more than the sum of the hardware.

12. vincelongman

Posts: 5554; Member since: Feb 10, 2013

I think you're right, the S5 costs less than $250 in hardware, the OPO hardware is very similar I think they are selling it at just above break even Also won't Oppo have paid for the majority of the R&D since they are building it

6. DEATHSTROKE9

Posts: 399; Member since: Nov 09, 2013

I appreciate that and I will consider this phone.

7. Cyberchum

Posts: 1009; Member since: Oct 24, 2012

I so want this phone but unfortunately, it'll never make it to Nigeria, what a shame .. ..You don't take this cheap phone to developed markets, you take it to developing ones, it's common sense.

16. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

I am sure there are plenty of independent contractors in Nigeria who could, for a small fee, convince someone to get an invite for you, order the phone for you, and send it to you. Are you not the son of a deposed Nigerian leader who has accumulated a stolen fortune, but just needs a OnePlus phone to be able to wire the money out of the country? Will you not bestow upon this helpful person a very generous portion of your wealth? Out of all the countries the phone isn't going to, yours is the most equipped to obtain a phone for you. Use the force, Luke.

8. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Way to big for a phone 5.5inch Wth 5inch is perfect

10. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Very skeptical from the very beginning... The invite system is just a propaganda train to generate buzz and publicity, when in reality, they probably have no intention of selling these in bulk, hence, the invites I applaud them for this clever marketing trick though. And lol at those who actually fell for it. You just got Punked!

15. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

All we need is a flashmob to swarm the OnePlus forums and tell Peter Lau to put up or shut up. Everyone hates the gimmick "invite" system. Somehow Peter Lau thinks OnePlus phones are the same as Gmail accounts and it is like 2004. What a stooge.

11. brnkcv

Posts: 6; Member since: May 06, 2014

There's no way cost on this thing is as high as $300

13. pwnarena

Posts: 1129; Member since: Feb 15, 2013

remember that "at cost" already takes into account their salaries and other expenses related to business operations.

14. anirudhshirsat97

Posts: 408; Member since: May 24, 2011

Finally some one who gets it. Some think cost only applies to the hardware costs. There's R&D, salaries, marketing etc which all add to the base cost of a phone.

17. daftside

Posts: 13; Member since: Apr 26, 2014

While I do appreciate they're selling the phone at a bargain price (what a steal!), somewhere in my heart tells me "why won't they sell it like everyone does? what benefit can they get if they sell it dirt cheap?". tbh i wouldn't mind if they priced it similar to other flagship phones out there, would still get this in a heart beat. Not sure about you guys and i know some might consider my opinion to be silly, but a business gotta have profit you know.

18. daftside

Posts: 13; Member since: Apr 26, 2014

i'm not even sure what's the true point they sell the device in the first place, after all the buzz they've generate thanks to the 'clever' invite system (they want it to be exclusive?), all the jerk marketing stunt they did earlier tht almost inciting a war and yet they put the price tag so cheap (of course everyone want it just for this) only to sell the phones in mere quantities.

20. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Simple.... Get people's attention to promote the brand. Brand recognition is what they're after.... After the tide comes back to normal, they will surely sell their future products at "normal" prices (eg $500-$600 range)

22. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

OnePlus One : the phone that is not buyable from the company that thinks people like to play "hunger games" for real. This is what they have achieved with the gimmicks. So people will go with something else. Good job, Peter Lau.

21. RedFox

Posts: 18; Member since: Jun 25, 2012

You are not selling any thing , you are just tease, talk and promote .

23. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

They will. Sooner or later This phone is just a promotional tool. Like what I have said, prices will eventually skyrocket once these true mass production models will start hitting the conveyor belt.

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