Wednesday, June 29, 2016

Brexit may force OnePlus 3 price hike in the UK

'Worrying downward trend of the GBP may make it difficult to maintain our current pricing structure in the UK,' company says.

Priced at £309 in the UK, the OnePlus 3 is about the least expensive premium smartphones available. Except it might not be so affordable for British buyers in the future. In a statement emailed to press and posted on the company's forums, a OnePlus spokesman admits that prices may have to rise following the dramatic drop in the value of the British pound that followed the country's recent vote to leave the European Union.

"We've always strived to create the best product and deliver them to customers at a reasonable price. However, the worrying downward trend of the GBP may make it difficult to maintain our current pricing structure in the UK. Our margins have always been thin, and our expenses are mainly in USD. This being the case, sudden drops such as the one that the Pound has recently experienced could have a direct impact on our prices.

We're telling you this now because we don't want you to be blindsided. If you're thinking of buying, we recommend doing so sooner rather than later. However, if a price change comes to pass, it will not be a decision that we take lightly. We have only had to increase prices once before, when the Euro hit a nine-year low against the dollar at the beginning of 2015, and we did so reluctantly. Currency fluctuations are not your fault, nor our fault; but if we sell at a loss, the simple fact is that there won't be a OnePlus in the future."

In the immediate aftermath of "Brexit," GBP nosedived to $1.33, to its lowest level against the U.S. dollar in 31 years, before rebounding slightly in recent days. In relative terms, that means OnePlus theoretically makes around $40 less from a OnePlus 3 sold today compared to a week ago. With admittedly slim margins, it's easy how that could make higher UK prices inevitable in the long run.

That doesn't mean a price hike is imminent, but OnePlus is clearly preparing fans for that possibility — and at the same time nudging those on the fence towards making a purchase.



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