OPPO once shone brightly in the mobile phone market, leveraging unique marketing strategies and outstanding product design to amass a loyal user base and secure top market share positions both domestically and globally.

In 2016, the OPPO R9 series skyrocketed to fame upon its launch, with the slogan "Charge for five minutes, talk for two hours" ingrained in consumers' minds. Sales surpassed 20 million units, making it one of the year's best-selling phones and solidifying OPPO's top spot in China's market share.

OPPO has also been proactive in preparing for the 5G era. As early as 2015, it established a communication standards team to participate in 3GPP 5G standards formulation, submitting over 2,000 technical proposals and becoming a key contributor and influential player in the field. In 2018, OPPO achieved several industry "firsts," including the world's first 5G video call based on 3D structured light technology, establishing the first 5G signaling and data link, enabling 5G internet access on OPPO phones, and facilitating the world's first multi-person video call on WeChat over a 5G network, giving it an early lead in the 5G technology race.

Premium Market: Struggling to Break Through

Despite OPPO's promising past in the mobile phone market, its performance in the premium segment has been lackluster, forming a stark contrast with its competitors.

In the global premium smartphone market, Apple and Samsung dominate. According to Counterpoint Research, premium smartphone sales accounted for 25% of the market in 2024, with an 8% year-on-year growth. Apple led with a 66% market share, followed by Samsung with 18%. Huawei, with continuous technological breakthroughs, ranked third with a 7% share, successfully establishing a presence in the premium market. Xiaomi is also making strides in this segment.

Unclear Product Positioning and Lack of Differentiation

OPPO's multiple mobile phone series exhibit ambiguity in positioning and a lack of clear differentiation, making it difficult to stand out in the premium market.

The Find series, as OPPO's premium flagship, should embody the brand's cutting-edge technology and innovative ideas. However, it has failed to demonstrate sufficient differentiation advantages in market competition. Compared to the iPhone and Huawei Mate, the Find series lacks a defining feature that forms a unique competitive edge, hindering its performance in the premium market.

The Reno series, positioned as a mid-to-high-end model focusing on slim design and imaging capabilities, faces stiff competition from rivals with unique features. Vivo's S series, also emphasizing slim design and photography, attracts young users with its excellent design and selfie effects. Xiaomi's Civi series, focusing on slimness and imaging, gains favor with consumers for its cost-effectiveness. The Reno series struggles to distinguish itself amidst such competition, lacking unique selling points to attract high-end consumers.

The A series, targeting the price-sensitive mid-to-low-end market, prioritizes cost-effectiveness and basic functions over brand and quality. While it has a price advantage, it lacks obvious configuration and performance benefits compared to other brands at the same price point, unable to support OPPO's premium market aspirations. Additionally, OnePlus, as OPPO's premium sub-brand, performs well in performance and configuration but lags behind international brands like Apple and Samsung in brand awareness and market influence.

Awkward Position in the Foldable Market

As the smartphone market reaches saturation, foldable phones have emerged as a new competitive frontier for manufacturers.

However, OPPO's foldable phone offerings have been underwhelming. The Find N5, while boasting a slim design with a thickness of 4.21mm unfolded and 8.93mm folded, and a weight of 229g, making it the slimmest foldable phone on the market, has issues in other areas.

In terms of market share, IDC data shows that China's foldable phone shipments reached 2.5 million units in Q4 2024, marking the first year-on-year decline of 9.6% after nine quarters of growth. For the full year 2024, shipments totaled approximately 9.17 million units, representing a 30.8% year-on-year increase.

In the foldable phone sector, Huawei leads with nearly 50% market share, followed by Honor with 20.6%, vivo with 11.1% thanks to its X Fold3 series, and Xiaomi with 7.4% from its vertically foldable products. OPPO, despite not releasing a new model for a year, holds a 5.3% market share, ranking fifth.

The OPPO Find N5 lacks competitiveness in the foldable phone market, with a low market share, making it difficult to challenge rivals like Apple and Huawei.

Overseas Market: Growth Bottlenecks

India, the world's second-largest smartphone market, is a critical battleground for major manufacturers. OPPO has been no exception, attracting Indian consumers with its excellent camera function and fashionable design, achieving notable success.

However, OPPO's market share in India has significantly declined in recent years. According to Counterpoint Research, while overall locally manufactured smartphone shipments in India increased by 6% year-on-year in 2024, OPPO's shipments fell by 34%, dropping to fourth place.

Changes in Indian consumer demand are a key factor. As the Indian economy grows and consumer incomes rise, demand for smartphones is upgrading, with consumers prioritizing performance, quality, and brand over basic functions. Additionally, scrutiny from the Indian government has brought considerable pressure on OPPO, with frequent policies and regulations restricting its development in India.

OPPO's strategic adjustments have also impacted its Indian market performance. In response to market competition and cost pressures, OPPO shifted its contract manufacturing model in India. While this adjustment may reduce costs in the short term, it has led to a decline in shipments and market share.

Slow Progress in the European Market

OPPO also faces numerous challenges and slow progress in the European market.

OPPO ambitiously entered the European market in 2018, holding its global launch event for a new flagship phone in Paris, France. Since then, it has continuously launched high-end series products tailored to market demand.

However, OPPO's European market performance has been disappointing. Patent disputes with Nokia have severely impacted its business. Since 2021, Nokia has initiated patent lawsuits against OPPO in nine countries and regions, including India, France, Germany, and the UK, applying for injunctions in each case. As a result, OPPO's European market presence has contracted.

While OPPO maintains a firm focus on the European market and plans to invest precisely and efficiently in key markets, the negative impact of patent disputes on its layout and development in the region is undeniable.

High operating costs in Europe, including labor, logistics, and marketing, also pose a significant challenge for OPPO. These costs increase OPPO's market operating expenses, compressing profit margins and putting it at a disadvantage in competition.

Technological Innovation: Missed Opportunities

In the smartphone market, technological innovation is the core driving force for enterprise development. However, OPPO has struggled in this area, failing to impress consumers with hardware performance improvements or software ecosystem development.

In terms of hardware, OPPO's performance is adequate but lacks standout features in core configurations like processors, memory, and storage. For instance, some models in the OPPO Reno series have lagged behind industry advancements in processor selection, resulting in performance gaps compared to other brands at the same price point. This may lead to noticeable lag and delay when running large games or handling multitasking, affecting the user experience.

In photography, while OPPO has emphasized imaging capabilities, it has hit a technological innovation bottleneck. Early successes in mobile photography with beauty selfie technology and excellent camera hardware have been eroded by increased investment in imaging technology by competitors. Nowadays, OPPO relies more on third-party suppliers for photography technology innovation, lacking independently developed core technologies, making it difficult to surpass competitors in photography effects and imaging algorithms.

In software ecosystem development, OPPO's ColorOS, while having advantages in interface design and user interaction, lags behind Apple's iOS and Huawei's HarmonyOS in system smoothness, stability, and functional richness.

Moreover, OPPO's late entry into the foldable phone market has widened the gap with competitors like Huawei and Samsung in foldable technology. This lag has also impacted OPPO's brand image, as foldable phones represent high-end technology and innovation, embodying a manufacturer's technological strength and capabilities.

OPPO's poor performance in the foldable phone market may cause consumers to question its brand's innovative capabilities and technological strength, affecting its overall brand image and reputation in the mobile phone market.

Breaking Through: OPPO's Future Outlook

Despite the current dilemmas, OPPO still has potential for breakthrough.

In the premium market, OPPO needs to clarify product positioning and highlight differentiation. The Find series should focus on the premium flagship market, increasing investment in chip research and development, imaging technology, and software ecosystems to enhance product performance and quality, creating premium flagship products with unique competitive advantages.

In overseas markets, OPPO must strengthen local operations, deeply understand local market needs and cultural characteristics, and formulate precise market strategies. Additionally, increasing marketing investment in the European market can enhance brand awareness and product influence through product launches and participation in international exhibitions.

In technological innovation, OPPO should increase R&D investment, strengthen cooperation with universities and research institutions, and establish a robust technological innovation system. By intensifying research in fields like artificial intelligence, the Internet of Things, and foldable screens, OPPO can launch more innovative technologies and products.

While OPPO faces challenges in the premium market, overseas markets, and technological innovation, opportunities abound. By actively addressing challenges, seizing opportunities, and adopting effective strategies, OPPO can achieve new development, stand out in fierce market competition, and reclaim its peak position in the mobile phone market.