OnePlusOne Aggressive Pricing

[Scott7217]

Not if the S line was also $300. Since the Nexus 5 is at a comparable price, I imagine a lot of people will gladly pay a little more to get a device that they can use well with one hand. I know I would.

If Samsung Galaxy S phones were the same price as their corresponding Note versions, we may see people choose the Note more simply because they believe they will get more bang for their buck.

That's not to say that people don't care about one-handed operation. There definitely are people who appreciate it, which is why devices like the Moto X are very popular.

In the case of the OnePlus One, the company has committed to a larger form factor for their launch product. I find it difficult to believe that they would bet their future on a large phone unless they believe it is something that would have the greatest appeal to their target audience.

 

[jdbii]

Not if the S line was also $300. Since the Nexus 5 is at a comparable price, I imagine a lot of people will gladly pay a little more to get a device that they can use well with one hand. I know I would.

Sent from my Galaxy S4 running SlimKat 4.4.2

Soon we will have hard data to answer this very question by seeing if the OnePlus cuts into Nexus 5 sales. Too bad Nexus might be jettisoning Nexus for the rumored silver project because a Nexus 6 versus OnePlus sales analysis would have been more on point.

 

[Scott7217]

Soon we will have hard data to answer this very question by seeing if the OnePlus cuts into Nexus 5 sales.

So, let's say the OnePlus One sells more than the Nexus 5. What conclusions would you draw from that observation?

 

[UJ95x]

So, let's say the OnePlus One sells more than the Nexus 5. What conclusions would you draw from that observation?

That they're better at advertising than Google

Sent from my Galaxy S4

 

[jdbii]

So, let's say the OnePlus One sells more than the Nexus 5. What conclusions would you draw from that observation?

As you referenced earlier, the conclusion I would draw is people want more bang for their buck even if it meant giving up the convenience of one-handed use. However, in a real world head to head, I don't think quantitatively larger displays sales would outnumber smaller sales, only that the lead differential would be less. For example, if both the Note 3 and S5 were $625, the difference might be 6 to 4 instead of say 7 to 3 at present prices (Hypothetically. I don't know the numbers).

 

[Scott7217]

So, I took a peek at the OnePlus forums, and one of the posts explained how they were able to keep the price of the phone low. To summarize, OnePlus is:

1. Cutting down on their marketing expenses

2. Eliminating retail channel costs

3. Not planning to make money for 2 years

Source: How will OnePlus make money?
OnePlus forums (link here)

It's definitely a bold strategy. If they make one wrong move, there's a strong chance they'll go out of business. Still, it's good to see a company take risks. They've certainly caught the attention of a lot of people.

 

[boss.king]

They're not going to "not make money" as they put it, they're not going to turn a profit. They're still covering all their costs, there just won't be anything extra in the bank at the end of the year.

 

[Scott7217]

They're not going to "not make money" as they put it, they're not going to turn a profit. They're still covering all their costs, there just won't be anything extra in the bank at the end of the year.

I'm glad you brought that up. OnePlus did mention in their forum post that customers shouldn't worry about them going bankrupt in 2 years.

So, this begs the question: If OnePlus is making its phones at cost, are other companies just ripping off their customers if their phones cost around $700 off-contract?

 

[boss.king]

I'm glad you brought that up. OnePlus did mention in their forum post that customers shouldn't worry about them going bankrupt in 2 years.

So, this begs the question: If OnePlus is making its phones at cost, are other companies just ripping off their customers if their phones cost around $700 off-contract?

Product development costs money. On top of that, a business is responsible to its shareholders before anyone else. Turning a profit is always the goal. Some companies do overcharge a little (Apple comes to mind) but why shouldn't they? If I could sell something for an inflated price and people were still happy to pay for it then what's the harm?

With OnePlus, they are selling this first phone at a low price to get brand awareness, loyalty, a bit of marketshare. They've made no commitments to keeping prices low in future.

 

[smokezx]

The pricing is just a marketing ploy, they even say it themselves, on their own website. They want people to know about them. Look at Oppo, only enthusiasts know of that name, they want the kind of presence that Motorola and HTC have. It's really crazy to think people are going crazy to have the ability to spend their money. Just think about how silly that sounds lol. I think their marketing is paying off because some big tech sites are covering this device, but to a certain point the price can only take it so far, availability is also important to people. Sure it has better specs than a Nexus 5 but the Nexus 5 is backed by a big reputable company, a good selection of accessories, better availability and even the competitive pricing. I know tons of people who couldn't wait to get an iPhone 5 when it came out, but because it was so hard to find, they simply settled for a 4S. This can only take Oneplus so far and I think the next device they will push is definitely going to disappoint in terms of pricing, considering they have to make a profit at some point in the future.

 

[jayzero76]

i was surprised about the price point and think is the way to go. when BB10 came out the first thing i thought was wow that price is a bit to high. if you want market share better get the price right.
the other thing i like is that they produce more 64GB version than useless 16Gb.

hope my arrives soon