Chinese smartphone giant Vivo is reportedly planning to integrate its popular sub-brand iQOO into its core business operations, in a move that could help the company increase efficiency and reduce costs. According to a recent report from 36Kr, Vivo and iQOO have shared several resources such as R&D, supply chain, and media procurement in the past, but have operated independently in areas such as planning, media strategy, and e-commerce.

IQOO logo
Courtesy: 91mobiles

The new move would involve merging iQOO’s branding and online business teams with Vivo’s existing teams, though it is unclear whether iQOO will retain a separate business unit. According to a source from Vivo, senior management has already discussed the possibility of eliminating iQOO’s independent stores and counters.

According to the latest data from CINNO Research, the top five mainstream smartphone brands in the Chinese market all experienced negative growth in January, with a range of decline between 4.2% and 23.5% compared to the same period last year. Among the Android camp, only Xiaomi’s sales decline was smaller than the overall decline in the smartphone market. OPPO, Honor, and Vivo all saw significant sales declines, with decreases of 13.5%, 19.2%, and 23.5%, respectively. Vivo (excluding iQOO) is currently the fifth-largest player in the Chinese smartphone market.

The integration of iQOO into Vivo’s operations could help the company consolidate its resources and improve its competitive position in the market. However, it remains to be seen how this will affect the two brands’ product and branding strategies moving forward. Vivo and iQOO have not yet responded to the reports.

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