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This is how OnePlus manages to keep its smartphone prices low

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According to OnePlus, the company saves costs on its smartphones by avoiding retail mark-ups, distribution costs and marketing spends.

In a recent forum post on its platform, smartphone maker OnePlus has revealed how it manages to keep the cost of its smartphones low, without passing on the component cost to its customers. Smartphone components are expensive, add to that the cost of publicity & a wide distribution network, and you you will get yourself a pretty expensive device. In simple economic terms, this is called the Trickle Down Effect.

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According to OnePlus, ‘traditional premium smartphone brands’ spend a lot of their resources in distribution costs, retail costs and marketing spends. On the other hand, OnePlus claims it optimises all these costs to keep its devices priced between Rs. 20,000 to Rs. 30,000. According to OnePlus, the company saves costs by avoiding retail mark-ups. In the blog post, OnePlus writes, “We saw that other brands were actually cutting corners to make an inferior product. Then they spent billions of dollars putting them in front of people to a point where you cannot avoid it. We thought there was a better way of doing things. With the advent of the internet and social media, big brands can no longer hide shoddy products behind their marketing campaigns.”

Below is the infographic shared by OnePlus, on its cost saving efforts, compared to traditional premium smartphone makers.