Twelve years after the launch of the OnePlus One, OnePlus has announced that it is exiting the United States. The news marks the end of a rocky relationship between the Chinese brand and American consumers. While recent devices like the OnePlus 15 and the OnePlus Open earned praise, the company's US footprint has been shrinking for years. T-Mobile stopped stocking OnePlus flagships after 2022, and Verizon's partnership lasted only from 2020 to 2021. By 2024, rumors of a complete dismantling were circulating, though OnePlus denied them at the time. Now, the exit is official.
The reasons behind OnePlus's failure in the US are deeply rooted in the structure of the American mobile phone market. Unlike many other countries where consumers buy unlocked phones directly, the US market is dominated by carriers. A vast majority of phones are sold through carriers like AT&T, T-Mobile, and Verizon, often using installment plans that spread the cost over 24 to 36 months. These carriers heavily subsidize premium devices—especially iPhones and Samsung Galaxy phones—by offering trade-in deals and bill credits that make a $1,200 phone seem like a few dollars per month.
OnePlus's core value proposition was always about offering near-flagship specifications at a significantly lower price. In 2014, the OnePlus One cost just $299 while rivaling the $649 iPhone 6 and the $600 Samsung Galaxy S5. The company's 'Never Settle' slogan resonated with tech enthusiasts who wanted high-end performance without the premium price tag. For years, OnePlus built a loyal fanbase through online-only sales and a community-driven approach. But when the company decided to enter US carrier stores in 2018, it entered a game it was never designed to win.
The fundamental problem was that carrier incentives favor expensive phones. When a carrier offers a phone for $4.16 per month, the consumer sees a small monthly payment, not the total cost. For OnePlus, a $600 phone—already cheaper than the competition—offered carriers less financial incentive to push it. Carriers make money by keeping customers on expensive unlimited plans and by locking them into long-term contracts. A cheaper phone means less incentive for the carrier to offer steep subsidies. Moreover, with iPhones accounting for roughly 75% of carrier store sales and Samsung another 15%, there was little room for a third player.
OnePlus tried to adapt by launching the Nord series, which saw 428% growth in the US in early 2021. But after losing the T-Mobile deal in 2022, even the budget-friendly Nord struggled to gain traction. Without physical carrier shelf space, OnePlus was forced to rely on online sales, which make up only a small fraction of the US phone market. The brand's enthusiast fans could buy directly, but the mass market never followed.
The larger context is that the US carrier model creates a 'feeling' of affordability rather than actual savings. A consumer who signs up for a 36-month plan to get a 'free' iPhone is actually paying far more over time through higher monthly service fees. OnePlus's transparent pricing—buy the phone outright for $600—seems unattractive when compared to a 'free' premium phone. This psychological pricing game is one that OnePlus could never win.
Additionally, OnePlus's early success was built on online hype and invite systems, which created scarcity and desire. But that model did not scale. When OnePlus entered carriers, it had to compete with the marketing muscle of Samsung and Apple. Carriers' sales staff are trained to push the most profitable devices, which are the high-end flagships. A OnePlus phone, with its lower price and thinner margins, offered less commission for the salesperson.
There were also technical challenges. US carriers require specific certifications for VoLTE, Wi-Fi calling, and 5G bands. OnePlus sometimes lagged behind in compatibility, leading to inconsistent user experiences. For example, some OnePlus phones lacked full support for Verizon's network, limiting their appeal. While the company eventually caught up, the perception of being a 'second-tier' player lingered.
The timing of OnePlus's US entry also hurt. By 2018, the market had consolidated around Apple and Samsung. Google's Pixel line was struggling to gain share, and LG had already announced its exit. The window for a new challenger was closing. OnePlus's attempt to go head-to-head with the giants was a long shot from the start.
In recent years, OnePlus shifted its strategy, raising prices on its flagships. The OnePlus 12 cost $799, closing the gap with Samsung's Galaxy S24. But in doing so, it lost its price advantage. The 'flagship killer' became just another flagship. At the same time, the company faced internal turmoil, with co-founder Carl Pei leaving in 2020 to start Nothing, which now sells phones in the US with a similar online-only, enthusiast-focused approach. Nothing has so far avoided the carrier trap, but it remains to be seen if it can succeed where OnePlus failed.
The OnePlus US exit is a cautionary tale for any phone brand hoping to break into the American market. Carriers hold the keys to the kingdom, and they have no incentive to support brands that undermine their profit models. Value for money is a compelling pitch for consumers, but in the US, the consumer is not the direct customer—the carrier is. Until that dynamic changes, the US will remain a two-player market.
OnePlus's departure also leaves a void for budget-conscious enthusiasts. The brand's Nord series offered clean software and solid specs at low prices. With OnePlus gone, options like the Google Pixel 7a, Nothing Phone (running Android), or even older flagship models will have to fill the gap. But none of these have the same carrier relationships that OnePlus once had.
Ironically, OnePlus's exit may benefit its parent company, Oppo, which sells phones globally but has never entered the US market formally. Oppo, along with sister companies Vivo and Realme, has focused on Asia and Europe. The US regulatory environment, with ongoing tensions between China and the US, made OnePlus's position even more precarious. The company faced potential bans or restrictions due to national security concerns, similar to Huawei. While OnePlus was never officially targeted, the uncertainty likely deterred carriers from deepening partnerships.
Ultimately, OnePlus's US story is one of a mismatch between a brand's DNA and a market's structure. The company tried to sell 'flagship killers' in a country where carriers want to sell you a $1,200 phone for $2.78 a month. The conflict was inevitable. OnePlus's exit marks the end of a dream for many tech enthusiasts—but it was a dream that never had a chance in the real world of American telecom.
As the brand shifts focus to markets like India and Europe, where unlocked phones and online sales are more common, it may find better success. But for the US, the curtain has closed on OnePlus. The last chapter is written: a company that once inspired a cult following now leaves behind a legacy of what could have been, a testament to the power of carriers in shaping the American smartphone landscape.
Source: The Verge News