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[Neowin] Why is the $299 OnePlus One so cheap? Because they're selling it at cost

post #1 of 19
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Quote:
And yet, the company finally unveiled its long-awaited One with a price tag of just $299 for the entry-level 16GB model (and $349 for the 64GB version) – a remarkable price, given the device’s flagship-class specs. The OnePlus One includes a quad-core 2.5GHz Qualcomm Snapdragon 801 processor, 5.5-inch display with 1080p resolution, a 3100mAh battery and 3GB of RAM, along with a 13MP six-lens rear camera and a 5MP cam up front.

Those specs put the One up against the likes of Samsung’s Galaxy S5 and the Nokia Lumia Icon – handsets that cost almost twice as much. So just how on earth does OnePlus do it?

The answer is that the company isn’t making a profit on the devices at all, as its CEO, Pete Lau, explained to TechRadar. “We are selling the phone at cost,” he said. “We are able to do that by redistributing our costs to better benefit the user.”
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post #2 of 19
They need to rethink their marketing strategy, especially that Samsung spent $14 Billion in Advertising. eek.gif
Quote:
“Rather than put money towards a large marketing budget,” Lau said, “we are focusing on online marketing and community interaction. Rather than working with retail partners, we rely on selling the device online."

The company's approach to marketing and retail has caused some headaches so far, however. Those who wish to purchase the device cannot do so unless they have an invite, which can only be acquired from someone who has already purchased the handset, or by entering 'contests and promotional events' on the company's forums and social media channels. As we reported previously, this 'invite system' has already been met with considerable backlash from the community, but the company hopes to increase availability of the device in late June.

Edited by 2010rig - 5/14/14 at 7:59pm
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post #3 of 19
Quote:
Originally Posted by 2010rig View Post

They need to rethink their marketing strategy, especially that Samsung spent $14 Billion in Advertising. eek.gif

Just wanted to say that your avatar is perfect for this article an what you quoted.
post #4 of 19

They are going to have some stiff competition since HTC is rumored to be building a non-metal-unibody version of the HTC One with pretty much the exact same internals for considerably cheaper than the HTC One/GS5 off contract.

post #5 of 19
Quote:
Originally Posted by Alvarado View Post

Just wanted to say that your avatar is perfect for this article an what you quoted.

ha ha, it goes hand in hand with a lot that is said around here. wink.gif

But seriously, they need to make it like the Nexus, and just straight up let people buy it online, rather than make them jump through hoops like that.
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post #6 of 19
Oh wow that's probably the most stupid ways to buy something
post #7 of 19
So I just went to buy 1

http://oneplus.net/how-to-buy

and really? I'm not going to waste my time going through 50 hoops to buy the phone just let me click buy and end it. Contests invited?


1. They are a nobody and yet they are trying to act "exclusive" Boom headshot to the marketing

2. They should make it easily available for people to scoop up after all that's what the device is yet I have to jump through 50 hoops to get it? for that fact alone I'll buy a samsung or HTC phone because I can click 2 buttons and be done.


3. Just make it easily available.


I can list wayyyy more things but don't feel like it.
post #8 of 19
Im more impressed with the Asus Zenfone 5 at $150

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post #9 of 19
Not interested if I can't buy it from my provider.
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post #10 of 19
Not available means irrelevant. People should stop talking about this phone. NEXUS FTW.
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