Two Leading Chinese Smartphone Brands Announce Merger
When talking about leading Chinese smartphone brands, most people immediately think of Huawei. A few years ago, Huawei brought Chinese smartphone brands to a new level. However, due to U.S. chip restrictions, Huawei’s position in the market is no longer what it used to be. Brands like Xiaomi, OPPO, and Vivo have since taken the lead.
According to recent data, in the first quarter of this year, Huawei’s global smartphone sales dropped out of the top five for the first time, placing it among the “Others” category. In terms of domestic Chinese brands, Huawei is no longer the leader—Xiaomi, OPPO, and Vivo have all surpassed it. This decline has been difficult for many Huawei fans to accept.
Unfortunately for Huawei, there is little it can do to reverse this situation. U.S. chip restrictions continue to pose a significant challenge. Meanwhile, brands like OPPO, which primarily use Qualcomm Snapdragon chips, have not faced the same level of pressure and have continued stable growth.
Now, a major shift has taken place. According to the latest reports from China, it’s official: two major Chinese smartphone brands have announced a merger, making them even stronger. These two companies are OPPO and OnePlus. In an internal email, OnePlus founder Pete Lau confirmed that OnePlus will now operate as an independent brand under OPPO, similar to how Honor once operated under Huawei.
OPPO and OnePlus: A Stronger Alliance
OPPO is a well-known brand in China, consistently ranking among the top domestic smartphone manufacturers. In previous years, it was overshadowed by Huawei. On the other hand, OnePlus has had a relatively lower profile in China, with many consumers unfamiliar with the brand. This is mainly because OnePlus has focused heavily on overseas markets rather than domestic sales.
However, things have changed. OnePlus has now re-entered the Chinese smartphone market. Although initial sales were not strong, the release of the OnePlus 9 series generated significant buzz. Now, with its merger with OPPO, OnePlus has gained a strong backer, ensuring its future growth in China.
For OPPO, this merger strengthens its market position. Even before this official announcement, OPPO and OnePlus were closely linked. Now, with Pete Lau’s confirmation, the merger has finally been realized.
Xiaomi Faces a New Competitor
With OPPO and OnePlus joining forces, Xiaomi now faces a formidable competitor. This could be a setback for Xiaomi’s CEO, Lei Jun, who may have anticipated little domestic competition following Huawei’s decline. However, OPPO and OnePlus’ merger changes the landscape.
First, Xiaomi became China’s largest smartphone manufacturer in the first half of this year, ranking third globally behind Apple and Samsung. OPPO, however, is not far behind in terms of sales. If OnePlus’ numbers are added to OPPO’s, the competition between Xiaomi and OPPO becomes much closer, with the ultimate winner yet to be determined.
For Xiaomi, OPPO was already a strong competitor. Now, with OnePlus integrated into its operations, OPPO’s market strength is set to grow even further. The battle for China’s top smartphone brand in the second half of the year will likely be between Xiaomi and OPPO, with OPPO having a stronger chance due to OnePlus’ additional sales.
Secondly, while Xiaomi has made significant strides in the high-end smartphone market, OPPO and OnePlus also offer premium models that challenge Xiaomi’s dominance. For instance, the Xiaomi 11 Ultra and the OPPO Find X3 Pro each have their own unique strengths, and consumers will choose based on their preferences.
Conclusion
Overall, the OPPO-OnePlus merger is a positive development for both brands. OnePlus benefits from OPPO’s brand recognition and influence, while OPPO gains additional strength from OnePlus’ presence in premium and global markets. Following this merger, OPPO is poised to become an even stronger competitor to Xiaomi, potentially reshaping the Chinese smartphone market in the years to come.
For more updates on the latest tech news, visit dailynewspapers.in.
