According to a report from China, OPPO is looking to capitalize on the void that’ll be left by Huawei in some key markets by significantly increasing smartphone production in the second half of the year. This report comes right after OPPO confirmed that Pete Lau will become the Senior VP of its holding company, OPlus.
The recent chip ban on Huawei will adversely affect its smartphone shipments in the coming months which will create a void in the market. So this is a crucial time for other smartphone makers like OPPO to take advantage of the situation.
China Starmarket exclusively reports that OPPO has been ramping up the production of its smartphones on a large scale. The company expects to ship around 100 million units in total by the end of the year. However, the publication’s supply chain sources give a more conservative estimate of around 85 million units.
OPPO’s push is expected to be focused on the European market. The company has still not managed to make its mark in the region (with a market share of only around 3%), but this would be a good opportunity to turn things around. On the other hand, Huawei is a major player in the Europe, with the company ranked among the top three smartphone vendors in key EU markets.
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After the chip ban, Huawei is expected to quickly lose its market share in all these key European markets. So Europe will be the real battleground for Chinese companies like OPPO and Xiaomi. According to counterpoint, these brands managed to grow at an impressive 41 percent and 55 percent respectively in the European market in Q2 2020. However, Huawei posted a decline of 46 percent YoY sales in the same quarter.
OPPO recently became the top smartphone maker in South East Asia in terms of market share. The company managed to edge out Samsung after grabbing a market share of 20.3 percent (vs 19.5 percent). OPPO is also increasing its presence in the Latin American market through its partnership with America Movil – the largest carrier in the region.
Overall, it looks like the smartphone market will see some major changes in the coming months.
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