Oppo Chase New Markets After 5G Flop In OZ
Chinese smartphone maker Oppo who was making headway in Australia with their Oppo and Realme brands until COVID-19 and revelations that their devices are a potential security risk, is now trying to open up new markets for their 5G smartphones that were a flop at Telstra when launched in Australia.
The Company has said that they are hoping to sell 5G smartphones in Japan as part of an aggressive push for global growth after the USA, UK and now European consumers turn their back on Chinese brands such as Oppo and Huawei.
The Company said that they are hoping to sell at least two of its 5G models in Japan despite a backlash by Japanese consumers against most Chinese brands.
Japan’s smartphone market has long been controlled by Apple, which accounted for 46% of the market in 2019, followed by Sharp, Samsung and Sony, IDC data showed. Oppo’ s 5G collaborations with two Japanese carriers comes as Apple prepares to release the first-ever 5G iPhone line-up later this year.
In Europe Orange, Vodafone and Deutsche Telekom are reassessing their relationship with Oppo due to the outbreak and spread of COVID-19 being blamed on China by European consumers.
In May last year, several carriers — including KDDI and Softbank in Japan, Chunghwa Telecom, Taiwan’s largest operator, and Britain’s biggest mobile carrier EE, which is owned by BT –halted sales of Huawei handsets after the Chinese tech giant was added to Washington’s trade blacklist.
Deng Yuchen, CEO of Oppo Japan, told the Nikkei Asian Review. “The Japanese market is a highly competitive market and Oppo’ s goal here is not only to offer affordable prices with high-quality products but to also elevate our own brand value and product competitiveness to engage deeper relations with the Japanese operators,” Deng said. “We wish to become a significant challenger in Japan.”
The vast majority of smartphones in Japan are sold through mobile operators, bundled with service contracts, and premium devices — those priced at over $750 — dominate the market.
Most smartphone makers see Japan as an extremely challenging market requiring a long-term commitment, high quality levels, and numerous technical approvals, according to market watchers. On the other hand, venturing into such a competitive market can help improve a smartphone maker’s brand image and aid its expansion in other markets.
Oppo first entered the Japanese market in 2018 via online and retailer channels they have less than 1% share.
As part of Washington’s clampdown on Chinese smartphone brands Huawei has lost access to Google Mobile Services, which includes Google Play, Gmail, Google Map and YouTube, services that are essential for most smartphone users outside China. The U.S. clampdown has also hit global carriers’ confidence in the marketability of Huawei’s smartphones, market watchers said.