'Derogatory pricing, delayed settlements': Smartphone retailers threaten to stop OnePlus products sale

Several smartphone retailers have threatened to discontinue sale of OnePlus products that include tablets, wearables and smartphones at their outlets. A total of 4,500 stores across 23 retail chains operating across Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Maharashtra and Gujarat have said that they will stop the sale of OnePlus devices starting May 1. This is because of unresolved issues regarding narrow profit margins, delays in claim processing, and bundling.

South Indian Organised Retailers Association has posted on X, “Chain store Retailers are not pleased with OnePlus for failing to address their issues despite multiple meetings. Claims pending for over 6 months with false assurances. Deadline given till month end for resolution.” The association includes 23 retailers including Poorvika, Sangeetha, Big C, and Pooja in the Southern and Western regions.

In another post, they wrote, “The voices and concerns of over 4500 stores within ORA membership are calling for the withdrawal of selling OnePlus products in the coming days. Derogatory pricing, delayed settlements, and product delays due to lack of commitments are key issues.”

Sridhar TS, president of the South Indian Organised Retailers Association (ORA) told MoneyControl, “Throughout the past year, we have encountered significant obstacles associated with selling OnePlus products, which remain unresolved. As esteemed partners, we had hoped for a more fruitful collaboration with OnePlus. Regrettably, the ongoing issues have left us with no alternative but to discontinue the sale of your products in our stores.  The president has said in its April 10 letter to OnePlus India’s director of sales, Ranjeet Singh.

He further added, “ORA painfully wishes to inform our collective decision to halt the retail of OnePlus products in our establishments from 1st May, 2024”.

In this letter, they also stated that because of the low-profit margin on OnePlus products, it has become difficult for them to sustain their businesses amid rising operational and financial costs. As per the letter, the retailers have witnessed continued delays and complications in processing warranty and service claims that has led to customer dissatisfaction. This has added a burden to retailers who have made several attempts to escalate and resolve such issues.

Tech Today has reached out to OnePlus for a comment.

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