BUSINESS

Oppo Isn’t Giving Up on Selling High-End Handsets in Developing Markets

Published: Nov. 22, 2024 6:35 p.m. GMT+8

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While its affordable offerings have proved popular in Southeast Asia and Latin America, Oppo Co. Ltd. isn’t giving up on its goal of selling more premium smartphones in the regions despite limited success so far.

In the third quarter, Oppo overtook Samsung to become Southeast Asia’s largest smartphone vendor by number of devices shipped for the first time, with a market share of 21%, according to a recent report by research firm Canalys, which attributed this success to the popularity of its entry-level A3x and A3 models.

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Oppo leads in smartphone shipments in Southeast Asia with a 21% market share but ranks third by value at 13%, behind Apple and Samsung.
In Latin America, Oppo ranks fifth in shipment volume with 6% market share and plans to increase its high-end phone presence despite weak premium demand.
Oppo focuses on premium offerings, including foldables and experience stores, to compete with Samsung and Apple in the high-end market, aiming to expand in Southeast Asia and Latin America.

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Who’s Who

Oppo Co. Ltd.: Oppo Co. Ltd. is a smartphone company aiming to expand its premium offerings in Southeast Asia and Latin America, where it currently leads in shipments but lags in value. It plans to close the high-end market gap with differentiated products like foldable phones and premium experience stores. While successful with affordable models, Oppo faces challenges in gaining profitability and competing against established brands like Samsung and Apple.

Samsung Electronics Co. Ltd.: Samsung Electronics Co. Ltd. was the second-largest smartphone vendor by shipment value in Southeast Asia, with a 23% market share, trailing Apple. In terms of shipment volume, it was overtaken by Oppo, which became the largest vendor. Samsung's established premium image presents challenges for Oppo’s high-end segment entry. In Latin America, Samsung dominated the $400+ segment, holding a 38% market share, while Oppo continues to expand its presence.

Apple Inc.: Apple Inc. had a 32% market share in shipment value in Southeast Asia, making it the leader in the region, according to the Canalys report. In Latin America, Apple held a 19% share of smartphones priced above $400 in the third quarter, ranking behind Samsung.

Singapore Telecommunications Ltd.: Singapore Telecommunications Ltd., known as Singtel, is a telecom operator in Singapore. Oppo has partnered with Singtel to sell its mid-tier and high-end smartphones in the region, aiming to improve its brand perception and compete in the premium smartphone market.

America Movil SAB de CV: America Movil SAB de CV is a major Mexican telecommunications company. Oppo signed a deal with them in August 2020 to leverage their sales channels, as most users in Latin America purchase phones through telecom service providers. This partnership was part of Oppo's strategy to enter and expand in the Latin American market, beginning with the introduction of entry-level handsets and later high-end models like the Reno series.

Xiaomi: The article mentions that Xiaomi holds a 14% market share in the $400-above smartphone segment in Latin America, trailing behind Samsung with 38% and Apple with 19%. Xiaomi's share positions it as a competitive player in that mid-tier and premium price category, although it is still significantly behind its main competitors.

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What Happened When

2020：: Mexico became Oppo's entry point to the Latin American market. Later that year, it started selling its entry-level handsets in Colombia, Chile, Peru and Guatemala.

August 2020：: Oppo signed a deal to use the sales channels of Mexican telecom operator America Movil SAB de CV.

October 2020：: Oppo established a dedicated division to oversee business development in Latin America.

2021：: Oppo brought its high-end Reno phone series to the Mexican market.

From 2020 to 2022：: Oppo established Oppo Gallery experience stores in two high-end Indonesian malls.

By the Third Quarter of 2024：: Oppo overtook Samsung to become Southeast Asia's largest smartphone vendor by number of devices shipped, with a market share of 21%. In Latin America, it was the fifth biggest vendor by shipment volume, with a 6% share of the market.

AI generated, for reference only