OnePlus’s comeback to European turf gained momentum on Tuesday as the Oppo-owned brand released a mid-range Nord smartphone alongside accessories at an event held in Milan, Italy. The new Euro 499 smartphone is being seen as the brand’s return to Europe as it tries to strengthen its footing in a smartphone market showing signs of recovery amid improved consumer confidence and hype over GenAI. At a closely watched event in Western Europe, a first for OnePlus, the brand showcased a larger 6.7-inch Nord 4 smartphone with an all-metal design. In typical OnePlus fashion, the device also offers better battery life, camera features, and improved software updates compared to the previous year. However, the big push, both on stage and in marketing material, was on AI software. The AI infusions this time include features like AI Linkboost for enhanced signal connectivity, AI Best Face for correcting closed eyes in photos, AI Clear Face to unblur selfies, and AI Eraser to remove background distractions. Other AI features slated for later this year include AI Audio Summary to transcribe audio files, Note Summary to summarize emails, and Text Translate to translate other languages. For the past few years, consumers have held on to their smartphones for longer durations as many didn’t find a compelling reason to upgrade to a new phone besides camera upgrades or long battery life. However, brands like OnePlus hope the push for AI in smartphones may give consumers a reason to upgrade. This is why AI features are being presented as a selling point for the latest smartphones. The big picture: the focus on AI is the flavour of the season amid the recent debut of Samsung’s latest foldables, and the trend will continue further when Google unveils its latest Pixel devices at an event next month and when Apple debuts new iPhones this fall. OnePlus also used the media event to launch an Android tablet, earbuds, and a smartwatch powered by Google’s Wear OS. The Nord 4 (Rs 29,999 and up), alongside the OnePlus Pad 2, Nord Buds 3, and Watch 2R, is also coming to India. High stakes for OnePlus OnePlus’s comeback with a 5G-capable Nord 4 (review) also signals how the brand is positioning itself to maintain its competitiveness in the mid-range segment, a move to shift more units amid stronger interest from consumers in Europe as well as India who don’t necessarily want to spend on a flagship smartphone. “It appears that OnePlus is trying to revive interest from its traditional heartland of users looking to get a mid-range Android smartphone with decent features at a punchy price. The OnePlus Nord 4 reflects that ambition,” said Ben Wood, chief analyst at market research firm CCS Insight. For OnePlus, the stakes are high to convince consumers to choose the Nord 4 over smartphones from other brands. That task has been made more difficult, especially in Europe, after BBK Electronics, Oppo’s parent company, was badly affected by a patent dispute with Nokia, leading to the suspension of its business in many European countries. However, the issue was resolved earlier this year after OnePlus reached an agreement with Nokia. “OnePlus is currently working hard to rebuild its position in Europe,” noted Wood, who said that the brand, alongside Oppo, wants to improve its ties with retailers and operators. “Given that OnePlus historically achieved much of its sales directly to consumers via its own website, it has a good opportunity to rebuild momentum. But ultimately, its market share in Europe is tiny,” he added. However, the launch of the Nord 4 doesn't guarantee success, with analysts warning that the company may still face trouble from brands like Apple, which continues to thrive by extending the availability of the iPhone 13, which is nearly three years old. OnePlus in India The Nord 4 smartphone also comes at a time when OnePlus faces questions over its future in India, as the brand has faced complaints from local retailers in the past. “In India, one major challenge for OnePlus is expanding its channel into offline retail with its current mid-to-high-end portfolio,” agreed Sanyam Chaurasia, Canalys Senior Analyst, who leads India market research. “Although the brand has made strides through a recent partnership with Jio Retail, competitors are still ahead. Moving forward, consumers in this segment will prioritise a comprehensive 'brand experience' from both product and channel perspectives,” he noted. It remains to be seen whether the Nord 4 will challenge smartphones from rival brands such as Samsung and Xiaomi and offline-heavy Vivo, but the phone’s specs and features are in line with what competitors are currently offering. “For OnePlus, if it aims to build AI features as a unique selling point, the brand needs to consider how to create competitive use scenarios and invest resources targeted at different markets, such as launching highly localised use cases for the Indian market,” Chaurasia said. At the Milan event, OnePlus didn’t announce a new flagship smartphone or a foldable device. “It makes no sense for OnePlus to continue pursuing the foldables opportunity at present,” Wood said. OnePlus has launched a high-end foldable smartphone in the past but has yet to launch a flip-style foldable aimed at Samsung’s Galaxy Z Flip 6 and Motorola’s Razr 50 Ultra. “With so many other companies chasing so little share, it’s hard to see why OnePlus would try to compete. Ultimately it makes far more sense for OnePlus to return to its roots with a product like the Nord 4 offering great features at a more accessible price point,” said Wood. (The writer is in Milan, Italy attending the OnePlus event at the invitation of the brand. He can be reached at anuj.bhatia@indianexpress.com)
