Chinese smartphone maker OnePlus has cleared the air about rumours surrounding the OnePlus 3 saying the flagship is very much in production. Reports had surfaced that the company was mulling a halt in production of the flagship due to shortage of AMOLED panels.

"The company is still producing and selling the OnePlus 3," a OnePlus spokesperson told Android Authority dismissing rumours that the device's production may be stalled.

The company, however, has not issued any clarification on whether there will be another upgraded version of the flagship with a new SoC and LCD panel. Reports had hinted that OnePlus may upgrade the SoC of the phone to Snapdragon 821 and replace the AMOLED panel with an LCD one owing to shortage of the former.

The company's co-founder Carl Pei, however, admitted that there is a month-long delay in shipping OnePlus 3 units due to unexpectedly high demand for AMOLED panels in 2016. But whether the company is still mulling a second device in the same series or not is not yet clear.

OnePlus has earlier harped on the fact that it is focusing on only one model of smartphone per year. If an upgraded OnePlus 3 is to be released by the end of the year or early 2017, it would divert resources from the OnePlus 4 production. The OnePlus 4 is likely to be released sometime in mid-2017 and to queue another variant of an existing flagship in this window seems less of a possibility.