OPPO sees its next stage of expansion as including Europe and Japan. This is based on comments reportedly made by the company’s CEO, Tony Chen, during an industry event hosted by Qualcomm in China today. Chen used the opportunity to explain that the company fully intends to enter both markets soon with the suggestion that OPPO views the entry into developed markets as not that different to the approach it has taken with developing markets up until now. In spite of the comments made, no detailed information was provided on when exactly a European expansion will happen, or with which devices.
What is clear is how OPPO has become a fairly dominant force within the Chinese domestic market. So much in fact that expanding its operations to markets such as Europe is being seen by some analysts as more of a necessity than a luxury. For example, a recent report from TrendForce picked up on this point precisely, suggesting how the Chinese domestic market is quickly becoming saturated and companies like OPPO and Vivo will need to expand to new areas soon if they hope to sustain a similar level of growth compared to what they have experienced in recent years. Therefore today’s comments while not too revealing, do add weight to the predictions made and highlight how the companies currently seeing the biggest levels of sales in China’s mobile market are starting to encounter a ceiling of sorts. Is it likely, therefore, OPPO is not the only large-scale Chinese manufacturer currently eyeing Europe and other similar markets as integral to future growth.
As for the event in general, this was the ‘2018 Qualcomm China Tech Day’ where Qualcomm looked to explain some of the upcoming deals and partnerships it has now made in China. For example, Qualcomm not only confirmed that OPPO (as well as Lenovo, Vivo, and Xiaomi) have jointly committed to investing $2 billion in Qualcomm’s RF Front End (RFFE) components, but also announced a new ‘5G Pioneer Initiative’ where Qualcomm, along with OPPO, Vivo, Xiaomi, Wingtech, and ZTE, will look to fuel the adoption of 5G through the introduction of new “5G premium tier devices.”