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A Few Words on Production Capacity

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  1. Carl Co-founder Staff Member Jun 20, 2014

    Carl, Jun 20, 2014 :
    Many friends have been yearning to learn more about our production to understand why it's currently so difficult to get the hands on the One.

    The excitement for the One has grown a lot and reached a point where everything we say is speculated upon and sometimes misinterpreted. The best way for us to solve this is to get the device into the hands of as many as possible. We are doing everything in our power to increase our shipments. Before we do, nothing we say will be of much use to calm people down. But that won't stop us from trying to communicate.

    Out of the many theories, some believe we are holding back on stock on purpose. This isn't true, and I'll explain why.

    Before announcing the One on April 23, we didn't anticipate this type of demand. On the OnePlus One, the panel is (display and touch sensors) one of the most important components. The procurement cycle for this piece takes 3 months, which means that the order for the panels on the devices that we're currently sending out was made prior to our announcement.

    As a startup, survival is a big concern. Sitting with excess inventory is something that can quickly kill us. Therefore, our initial sales estimations were conservative. We didn't expect the One to be such a popular device, and this has resulted in a shortage of stock. In the past weeks, we've done everything we can to cut down delivery times for upstream materials, while adjusting our order sizes. We're also exploring ways to increase our production yield.

    Being very strict on quality had led to lower production yields. Using the display as an example, while already coming from one of the industry's top suppliers, the current pass rate is below 70%. This is a bottleneck to our capacity. Our back covers that are made of unique materials and finishes, are facing yield problems due to the complexity of their manufacturing. Also, 64GB memory is also a bit hard to get a hold of. 64GB tends not to be a very popular capacity, and most manufacturers do not order a lot of 64GB memory. Therefore, supply is relatively unstable.

    Through joint efforts with our suppliers and partners, our production pace is planned to pick up starting next week. I'm aware that we have promised increased availability in late June. This is happening, just not as fast as the steady increase in demand that we've been seeing.

    Our goal in the first few years is not to make money, but rather make a name for ourselves by delivering a great product to a lot of people. Our hope is that those users will be so happy with the One, they'll help us spread the word. Intentionally limiting production is the direct opposite of what we want to achieve.

    Looking at our traffic stats for the past months, and then looking at how many devices we've delivered thus far, I can speak for the entire team when I say that we are quite stressed at the current state of affairs. We've also had our fair share of other hiccups along the way and are sincerely sorry that we couldn't get everything right on the first try. Despite our stumbles, many warm hearted fans have showed continued support.

    We're thinking of what we can do to make up for the less than perfect experience for our early supporters. Please share your thoughts. All ideas will be considered. :)
     

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  2. So_ony Level: KitKat Senior Moderator Jun 20, 2014


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  3. Dexter Morgan Level: Lollipop Jun 20, 2014

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    mwfontan, rdjg22, mosesv26 and 8 others like this.
  4. ycysam Level: KitKat Jun 20, 2014

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  5. Deepak Level: KitKat Jun 20, 2014

    Deepak, Jun 20, 2014 :
    Great :)

    Edit:

    Even after reading it is simply "GREAT" because you have spoken and spoken the truth.
    TRUTH - which what many have expected from you guys, simple communications now & then with what's happening around would go a long long way in satisfying many many customers ;)
    Many here were pissed not just about the delay BUT for the lack of proper communication of the true reasons., and now that you are forthcoming with what's happening, I am sure people will be less angry and will wait to get hold of OPO and they will truly support for a long time to come... All the very Best 1+ guys (@Carl @David S. @Emmanuel @Bridget) been tagging u for most reasons, well y not for appreciating too ;)
    TRUTH is all that takes to succeed &/ win People's Heart ;)

    [​IMG]

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  6. Darksidious Level: Jelly Bean Jun 20, 2014

    Darksidious, Jun 20, 2014 :
    Nice,
    @Carl for me the best things you can do is keeping us informed and up to date.
    With this kind of thread you gain loyalty.
    Transparency is nice the problem is just that sometimes people don't understand.

    I also think that your presence (admin) on the forum is really important. You have to enroll more people dedicated to the communication. The admin have to be presents :p
     
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  7. jamalie4 Level: Jelly Bean Jun 20, 2014


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  8. ivsu Level: Ice Cream Sandwich Jun 20, 2014


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  9. nunomrmartins Level: Jelly Bean Jun 20, 2014

    nunomrmartins, Jun 20, 2014 :
    Glad to hear feedback;)
    EDIT:
    As an Early Supporter (#3867), it would be nice to know why there are several ES with #4nnn and #5000 that have been contacted by OP about their invites and there are many #1nnn, #2nnn and #3nnn that fall within the rules that are still waiting for the "precious email" from you....:(
     
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  10. Waterdroid Level: KitKat Senior Moderator Jun 20, 2014

    Waterdroid, Jun 20, 2014 :
    What about a special invite for Early Members to get a free accessory such as a back cover or a case with the purchase?
     
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  11. Serefor Level: Gingerbread Jun 20, 2014


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  12. picturethefuture Level: Ice Cream Sandwich Jun 20, 2014

    picturethefuture, Jun 20, 2014 :
    No, of course there won't be a demand for a high-end device at 269.- EUR... man!
     

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  13. TheTubTruck Level: KitKat Jun 20, 2014


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  14. Denni007 Level: KitKat Jun 20, 2014


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  15. LasseHFN Level: Honeycomb Jun 20, 2014


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  16. ganitz Level: Ice Cream Sandwich Jun 20, 2014


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  17. Kureen Level: Jelly Bean Jun 20, 2014


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  18. jak Level: Jelly Bean Jun 20, 2014


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  19. shem_pl Level: Ice Cream Sandwich Jun 20, 2014

    shem_pl, Jun 20, 2014 :
    @Carl Please address the yellow screen tinting problem. That seems to be pretty blown out all over forums. Are defective units going to be replaced? Is that covered by warranty? Is that something you are aware of and are trying to fix at the moment?

    A lot of early supporters still haven't received their invites. Well-known members, #<5000, active on forums with shipping addresses in one of 16 countries specified.. Are they coming any time soon?
     
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  20. DaHu4wA Level: Ice Cream Sandwich Jun 20, 2014

    DaHu4wA, Jun 20, 2014 :
    thanks for the update :)

    @Carl
    My 2 cents about the current state:

    We all know that the social media marketing is part of your low-cost strategy.
    Unfortunately, there is so much "hate" in the air that this strategy doesn't seem to work right now, 3/4 of all comments on facebook are like "the phone you can't buy" or "never selling".
    I'd really focus more on the early supporters / active members in the forum instead of attracting even more notice on social media platforms.

    As I'm not even close to be a early supporter I have no clue when my time will come. I think that's also one thing frustrating most of us here...
     
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