OPPO, one of China’s leading smartphone manufacturers, plans to withdraw from its business operations in Germany, France, Netherlands, and the UK. The company will only retain a few employees to handle basic operations, and the plan is expected to be implemented in mid-2023. The move comes amid tough market conditions in Europe, where high sales costs and declining consumer purchasing power have made it increasingly difficult for companies to operate profitably.
OPPO’s decision to scale back its operations in Europe reflects the challenging environment faced by smartphone manufacturers in the region. According to Counterpoint Research, smartphone shipments in Europe declined by 17% in 2022, marking the worst year for the industry since 2012. This trend was particularly pronounced in the fourth quarter of the year when OPPO’s shipment volume fell by 39% year-on-year.
The decline in smartphone sales in Europe has been driven by a number of factors, including the ongoing Russian-Ukrainian conflict and inflation, which have caused a decline in consumer purchasing power. Additionally, the high operating costs associated with doing business in the region have made it difficult for companies to achieve profitability.
Despite these challenges, OPPO remains committed to the European market and plans to invest accurately and efficiently in key markets in the future. The company recently launched the global version of its OPPO Find N2 Flip in London, UK, and showcased multiple products and technologies at the World Mobile Congress in Barcelona, Spain.
However, OPPO is also facing a difficult patent litigation issue in Europe. Nokia has sued OPPO for patent infringement in Finland, Germany, Sweden, the UK, the Netherlands, and other countries after the company entered the European market.
In response to the challenging market conditions, industry experts suggest that smartphone manufacturers will need to focus on innovation and differentiation to stand out in the crowded market. Companies will also need to work closely with carriers and retailers to effectively market and distribute their products in the region.
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