Carl Pei, the co-founder of OnePlus recently had an interview with PC Magazine to give a one-on-one discussion on the year the company has been through. A lot was revealed in this sit down including how the company works its supply chain to meet with the demand of the OnePlus One. Pei admitted that it doesn’t have as many resources compared to the big tycoons like Samsung and hence, that’s why the company has the invite system and the every now and then pre-order system.
Pei further explained that OnePlus only makes a small share of profit with every headset it sells. Hence, the company only orders components for devices that it knows will sell. It reduces the risk and makes it easier for the company to ensure its plans for the future. According to Pei, there is a possibility that one day, the demand will end and the company doesn’t want to be stuck with units that are not selling and have to be sell the products for a discounted price that is lower than what the cost to make the headset was. Hence, making a huge loss.
OnePlus is trying to make smarter moves in this competitive business as only the best survive. It doesn’t have a ton of revenue to keep it afloat if it makes the wrong decision. However, as of now, the company is doing quite well. The company only planned to sell 30,000 units of the OnePlus One but it has already blown the mark away by selling over half a million products. As a conclusion, OnePlus only ships products once they are bought so there isn’t such a thing as running out of stock.
The invite system is still something consumers of OnePlus need to get use to as not everybody wants to have to go through such a troublesome system to just get a phone. But at only USD$299 (MYR 1050), the flagship, OnePlus One might just be worth the trouble.