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OnePlus did with the OnePlus 3T what Google failed to do with the Pixel

OnePlus 3T and Google Pixel share a lot of specifications yet the former is priced almost half the price of the latter.

OnePlus today launched the OnePlus 3T in India at Rs 29,999 for 64GB variant and Rs 34,999 for 128GB variant. While OnePlus 3 is still available, OnePlus 3T will be available for sale starting 14th December at 12:01 AM. Talking about the international price, the device is priced at GBP 399 (approx. Rs. 33,700), EUR 439 (approx. Rs. 31,200), and $439 (approx. Rs. 29,800), while the 128GB model has been priced at GBP 439 (approx. Rs. 37,100), EUR 479 (approx. Rs. 34,800), and $479 (approx. Rs. 32,500).

We were really surprised by OnePlus's decision to price the new OnePlus 3T at a price near identical to that in the US. Contrary to this, Google Pixel 32GB and iPhone 7 32GB is priced at $649 (approx. Rs 43,500) in the US. Whereas, in India, Google Pixel 32GB will cost you Rs 57,000 and iPhone 7 32GB will cost you Rs 60,000 ignoring all the discounts and cashback offers on both the devices. So what's happening here? Where one company is offering the device at the same price as in the United States, the another one is charging a premium amounting to as much as Rs 17,000. There is no rocket science here as we help you find out what really is the reason behind the price difference.

Google Pixel Specifications

OnePlus 3T Specifications

Starting with the Google Pixel, Google decided to dump its Nexus series for its own brand. Where earlier Google had no control over the design and manufacturing aspect of the device, this time it had full control. Which is where Google took some liberty and priced the Pixel devices on par with Apple's iPhone 7 and 7 Plus. Further, the Pixel devices came in India with the brand name Google and not any other existing manufacturer which further hiked up the net price.

Putting all this in figures, converting the US price, Google Pixel is priced at Rs 43,500 (approx.). However, India as a country, charge a lot of taxes to the companies coming from outside selling their devices in India. In other words, charges like Basic Custom Duty, Special Additional Duty, Anti-Subsidy Duty, Sales Tax etc. has to be added to the price or else the company (Google) will incur heavy losses. Moreover, Google doesn't have its own distribution channel in India which is where it has to spend even more. Not only this, Google has also spent huge amounts of money on advertisements as well which again is charged by the end consumers.

On the other hand, OnePlus saves a lot on Distribution, Retail and Marketing cost. Earlier this year, in a forum post, OnePlus explained how it manages to price its devices between Rs 20,000 - Rs 30,000. According to OnePlus, 'traditional premium smartphone brands' spend a lot of their resources in distribution costs, retail costs and marketing spends. That is why, we rarely see any advertisements from the company on Television, Bill Boards and other expensive modes of advertising. Further, making the device available only through online portal Amazon, the company saves a lot in distribution cost as well. However, one may note that OnePlus is also charging a premium but on the 128GB variant.

To sum up, there is no doubt that smartphone components cost a lot, especially on high-end Android smartphones. The top-notch processors, RAM, camera modules all come with a price which is why companies like HTC, LG, Samsung price their devices so high. One the other hand, companies like OnePlus, Xiaomi are actually selling the devices at cost.

First Published : Friday, December 02, 2016 - 15:50




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