Why is OnePlus facing exit rumours?
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Chinese smartphone maker OnePlus, once one of the fastest-growing premium smartphone brands in India, is reportedly planning to wind up its operations in Europe and the US. Some reports have also claimed that the company could eventually exit the Indian market around 2027 as part of a global restructuring by its parent company, Oppo. The reports further suggested that sister brand Realme may also withdraw from certain markets. However, OnePlus has denied the speculation, saying its business continues to operate normally.
“OnePlus India continues to operate its business as usual, with all local operations on track. We urge the media to exercise restraint before amplifying unverified speculation,” the company said in a statement.
Even though the company has dismissed the reports, rumours about OnePlus scaling back its global operations have been circulating for several months. Industry experts say the brand has been facing mounting challenges, particularly outside China.
Is OnePlus reducing its global presence?
OnePlus’ biggest challenge today is that its global business is becoming increasingly dependent on China. According to Counterpoint Research, China accounted for 74% of OnePlus’ global smartphone shipments in the first quarter of 2026, up from 59% a year earlier. India remains the company’s second-largest market, but its share has fallen sharply from 30% to 19% over the same period. The US business has virtually disappeared, contributing 0% of global shipments in Q1 2026, while the share from other international markets has declined from 9% to 7%.
The numbers suggest that while OnePlus continues to have a presence in India, its business outside China has weakened significantly.
What do experts say?
Industry analysts believe multiple factors have contributed to OnePlus’ struggles. One of the biggest challenges has been the sharp rise in memory chip prices. LPDDR (Low-Power Double Data Rate) memory prices have reportedly increased by nearly 250% over the past year, pushing up smartphone manufacturing costs.
Unlike Apple and Samsung, OnePlus built its reputation by offering flagship-level specifications at relatively affordable prices. Rising component costs have made that strategy increasingly difficult to sustain.
“OnePlus built its name as the ‘flagship killer’ — high-end specs, mid-range price, and pursued aggressive global expansion. That growth era’s over. The company is now doubling down on China and retreating from the rest of the world. We expect other Chinese OEMs to follow the same playbook, driven by the ongoing memory crisis,” said Tarun Pathak, research director at Counterpoint Research.
Prabhu Ram, vice-president–industry research group at CyberMedia Research (CMR), said OnePlus initially built strong momentum in India by positioning itself as a premium challenger brand. “But its pivot to Nord didn’t deliver the volume fillip the company was banking on. It also ceded space in the premium segment to other challenger brands. The brand also faced headwinds subsequently with memory and component costs squeezing margins globally. At CMR, our tracking shows a double-digit decline for OnePlus in India over the past several quarters. All said, OnePlus continues to operate in India today, and speculating on its future beyond that would be premature,” he said.
Faisal Kawoosa, founder and chief analyst at TechARC, believes the challenges extend beyond OnePlus. “The smartphone market is contracting worldwide. Many markets have matured and there is limited growth. In markets like India, rising memory prices have temporarily slowed demand despite long-term potential. This makes it difficult for companies to sustain multiple brands. Earlier, some brands focused only on online sales while others concentrated on offline retail, but today every brand needs a multi-channel strategy. It is also becoming increasingly difficult for brands to create unique and defensible innovation. So, what additional value will a brand bring, especially if it belongs to the same parent group,” he said.
OnePlus entered India in December 2014 and quickly became popular by offering premium smartphones at prices significantly lower than rivals such as Apple and Samsung. The brand initially sold its phones through an invite-only system, creating strong demand among technology enthusiasts. By 2018, it had emerged as one of India’s leading premium smartphone brands.
In 2020, OnePlus expanded its portfolio with the Nord series, targeting the mid-premium segment. The company also diversified into smart TVs, tablets, smartwatches and audio products.
However, the brand’s fortunes began to change after OnePlus merged its OxygenOS software with Oppo’s ColorOS in 2021. OxygenOS had earned a loyal following for its clean, near-stock Android experience. After the merger, many users complained about software bugs, slower performance and pre-installed applications.
The company also faced challenges in its offline retail business. In 2024, more than 4,500 mobile retailers across South and West India reportedly stopped selling OnePlus smartphones, alleging low profit margins and inadequate after-sales support. The episode further dented the brand’s image in one of its most important markets.
For now, OnePlus maintains that it is continuing business as usual in India. However, industry analysts believe the company will need to revive growth outside China if it wants to regain the global momentum it once enjoyed.
