The rise of OnePlus and MI! -What`s happening to the giants of the smartphone industry?

May 27, 2019
by Agam Chaudhary

The rise of OnePlus and MI has been a steep one. Both brands started out as underdogs; OnePlus in 2014 and Xiaomi in 2010. In 2019, both brands are dominating their respective markets.

OnePlus shakes the premium market

Apple and Samsung both have bowed down to OnePlus, especially in India. The primary factor which led OnePlus to the top is its cost. Hal Addins, the chief economist for Apple shareholder Capital Investment Council, said that phones such as OnePlus 6T are almost on the same level as Apple`s high-end phones, for half the price. Carl Pei, the co-founder of OnePlus, explained that they cut down on the marketing costs by focussing more on online and digital marketing (that`s what we do!). As was expected, consumers opted for the phone which provided them with almost the same features as a high-end one by Apple or Samsung for almost half their price. With Huawei banned, OnePlus`s market share in US is bound to increase.

Xiaomi rocks the budget-phone market

Xiaomi also had an approach similar to OnePlus. They spent little to no resources on advertising and consequently, their low-priced phones won over the hearts of consumers with low-budgets. In India, Xiaomi gained popularity with the release of their Redmi Note 4. Thereon, it was a cosy path to the top for MI phones. Brands like Nokia, Samsung, etc. couldn`t match the quality of their phones for such low prices. As of 2019, Xiaomi is leading the smartphone market in India with 29 percent market share.

Apple is being battered by OnePlus and Xiaomi in markets like India

What happened to the giants?

Apple and Samsung are facing fierce competition from the likes of Xiaomi and OnePlus. With the release of OnePlus 7 Pro for just $749, Apple and Samsung are bound to revise their pricing strategies. Indeed, no one will spend an extra $250 to $500 just for the brand name. The question is whether the Americans will respond to a Chinese brand as well as India did? It seems that Apple and Samsung have lost their stronghold on the Indian market, but the same cannot be predicted for US because of the current political climate. Donald Trump`s anti-China views are known to all and the recent ban of Huawei tells the story as it is.

The approach

The secret to the success of OnePlus and Xiaomi is a combination of saving cost on retailers and their heavy online and digital marketing. This is the digital age, and Xiaomi and OnePlus have shown what a brand can achieve through digital marketing. The resources were spent on building better products, and the word was spread online. As a result, the products were of high quality, offered for low prices. This approach definitely struck a chord in markets like India where people tend to go for the most affordable of all options. Whether this approach will work in markets like U.S.A. and Europe is a question that only time will tell.

Xiaomi and OnePlus utilized the power of digital marketing – something that most brands fail to do. It`s time to recognize the power Internet holds. Your brand needs to make its presence felt on the digital space and DigitaLabs can help you do just that.


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