OPPO plans to exit its mobile phone business in Germany and the UK due to high sales costs and low return on investment, reported 36Krypton on Monday. However, they will maintain a small presence in those countries, added the report.
It also said that business in other European countries will continue as usual. OPPO has denied the reports of it leaving the European market altogether and will focus on key markets. The European market has proven difficult to make a profit, with agents reluctant to invest due to losses.
A person close to OPPO’s European business said, “Although the product can be sold, it does not make money, and the ROI is not high. (OPPO’s European business) is bleeding.” Agents share the same attitude towards the European market, saying “I am not willing to accept it, because I will lose money. (Agents) will basically not invest again.”
OPPO Denies Leaving European and UK Markets Amid Reports
OPPO has denied reports that they are leaving the UK and European market. An Oppo spokesperson confirmed via email to techadvisor that they are committed to all the European markets they currently operate in.
Leaker and All About Samsung writer Max Jambor had previously tweeted that both OPPO and OnePlus would be leaving Europe, specifically citing Germany, the UK, France, and the Netherlands as the first countries to be affected. However, both companies have denied these claims.
OnePlus to continue to maintain stable operation in European and UK Markets
According to John Porter’s report on Theverge.com, OnePlus Global PR Manager James Paterson assured them that the company has no plans to withdraw from the European and UK markets and will continue to maintain stable operations in these regions.
Furthermore, OnePlus is committed to increasing its investments in Europe and delivering even more innovative products and solutions to its users.
“OnePlus will not exit from Europe and the UK and maintains stable operations in local markets. OnePlus will continue to invest in Europe and provide more innovative product and solutions for its users," – OnePlus Global PR Manager James Paterson
Unclear what this means for Oppo https://t.co/P7vie9HFfT
— real.jon.porter (@JonPorty) March 27, 2023
Macroeconomic Factors Impacting European Market
The Russia-Ukraine war and inflation have led to a significant drop in consumption power in Europe. According to Counterpoint data, smartphone shipments in Europe will only be $176 million units in 2022, a 17% drop from 2021 and the worst year since 2012. In the fourth quarter of 2022, OPPO’s shipments will drop by 39% year-on-year.
Challenges in the British Market
The UK, France, Germany, Italy, and Spain are the top brand markets in Europe. The UK market is notoriously tough for mobile phone manufacturers due to operator control, software and hardware customization requirements, and high R&D and marketing costs.
Analysys Mason data shows that 60% of mobile phone sales in the UK are from operators, the highest among the five major European countries. Huawei took almost two decades to establish itself in the UK market and became the third-largest player after releasing Mate 20 and P20 in 2018.
According to OPPO spokesperson’s statement to techadvisor:
We had a great start in 2023 with the successful launches of several products in Europe and have a line-up of upcoming products for the rest of the year. As always, OPPO will continue to provide more innovative products and the best-in-class service for users moving forward.
Update: In an official statement to, OnePlus, said:
OPPO and OnePlus are committed to all the existing European markets and the UK. We had a great start in 2023 with the successful launches of several products in Europe and have a line-up of upcoming products for the rest of the year. As always, OPPO and OnePlus will continue to provide more innovative products and the best-in-class service for users moving forward.