Will Oppo fall victim to the smartphone crisis?

Will Oppo fall victim to the smartphone crisis?

15. Mai 2023 0 Von Horst Buchwald

Will Oppo fall victim to the smartphone crisis?

Shanghai, 5/15/2023

Chinese smartphone maker Oppo has abruptly shut down its Zeku chip design unit as it struggles with the ongoing smartphone market slump.

Oppo founded Zeku in 2019 to develop chips for its own devices. The move was intended, in part, to strengthen Oppo’s autonomy and reduce its reliance on US suppliers amid ongoing chip export restrictions.

However, an uncertain economy and an uncertain smartphone market have led to the company being abandoned. According to Canalys, the global smartphone market declined 13% year-on-year in the first quarter of 2023, the fifth consecutive quarter of decline. Oppo saw its smartphone shipments drop from 37.5 million in Q4 2020 to 25.8 million in Q3 2022.

The move suggests Oppo is confident it can source components, either by avoiding sanctions or by ensuring supplies

within China.