Caixin
Oct 20, 2020 07:31 PM
BUSINESS & TECH

Smartphone Heavyweight Oppo Flips Switch Into Smart TVs

Oppo launches its first smart TV at an press event in Shanghai on Monday.
Oppo launches its first smart TV at an press event in Shanghai on Monday.

Smartphone-maker Oppo has entered the smart TV arena, joining a field of rivals like Huawei, Xiaomi and Samsung looking for growth in a nascent internet of things (IoT) universe of smart devices that communicate over the internet.

The company, the world’s fifth biggest smartphone brand, launched its smart TV foray with the unveiling of three new models on Monday. That included two with 65-inch screens and a third with a 55-inch screen, priced at 7,999 yuan ($1,197), 4,299 yuan and 3,299 yuan.

The launch comes as a growing number of smartphone makers roll out TVs and other electronics in pursuit of an IoT world of interconnected devices. Oppo’s new TVs will run on a modified version of its Color OS operating system now used in its smartphones, which is based on Google’s free Android system.

Such system compatibility among IoT devices is key for them to communicate, but also makes communication between products using different systems difficult or impossible.

“Oppo’s TVs continue its IoT product strategy of learning to be ‘walking on two legs.’ It looks ambitious, but it’s also obvious what they’re trying to do,” said Canalys analyst Jia Mo. “As far as Oppo is concerned, it’s a case of ‘If other people have it, then I want it too. Nobody wants to yield the market to Xiaomi.”

Xiaomi was one of the first to enter the smart TV market, and since its earliest days has billed itself as the creator of an ecosystem of smart products and devices rather than a pure smartphone maker. The company launched its first smart TV in 2013, and last year became the first company in China to ship more than 10 million sets in a single year. Besides TVs, its current smart device lineup includes a range of other devices from air purifiers to scooters and even luggage.

Huawei entered the TV field more recently, rolling out its first model a year ago. Outside of China, smartphone giant Samsung has offered TVs as part of its product lineup for decades, while Apple currently offers its set-top box-based Apple TV service without selling actual TV sets.

Smartphone makers have increasingly been turning to such related products as the market for their core products slows after years of explosive growth. The global smartphone market contracted for three consecutive years through 2019, according to IDC, and is expected to shrink again this year as the global pandemic continues to weigh.

Like others, Oppo has suffered this year during the pandemic. In the second quarter its smartphone shipments plummeted 19% to 24 million units, giving it 8.6% of the global market and making it the world’s fifth biggest brand, according to IDC. The company is planning to sharply ramp up production in the second half of the year to try and take share from hobbled Huawei, which has retreated from many global markets in the face of U.S. sanctions.

Oppo began entering the market for IoT devices last year and now has more than 20 related products with 5 million users. The company plans to focus its future IoT efforts on the three areas of health-, entertainment- and family-related products.

IDC estimates roughly 93 million smart home devices were shipped in China in the first half of this year, down 5.4% from a year earlier. It expects the market to pick up in the second half of the year, with estimated total shipments for all 2020 rising 4% to 220 million units.

Contact reporter Yang Ge (geyang@caixin.com)

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