OPPO to shrink its business in Germany and the United Kingdom

Chinese smartphone manufacturer OPPO has announced its plans to withdraw from the mobile phone market in Germany and the United Kingdom. The move comes as part of the company's phased adjustments to its European business plans. While the company will retain a small number of employees for basic business operations, its main focus will now be on Italy, Finland, Spain, France and other countries in the region.

The current smartphone industry is not in an era of expansion, said OPPO in a statement. Therefore, the company will periodically adjust and tilt its key markets. However, its focus on the European market remains firm, and it will be precise and efficient in its future investments in key markets.

OPPO had released the international version of its Find N2 Flip smartphone in London, England on February 15th, and brought a range of products and technologies to the 2023 Mobile World Congress in Barcelona, Spain on February 27th.

High operating costs and patent litigation issues

The reason for OPPO's withdrawal from Germany and the United Kingdom is primarily due to the high operating costs in Europe. The general consensus in the industry is that long-term investment is required, the effect is slow, and the cost is expensive. Moreover, in recent years, consumption power has dropped sharply in Europe due to macroeconomic reasons such as the Russo-Ukrainian war and inflation.

OPPO is also facing thorny patent litigation issues in Europe. After entering the European market, Nokia sued OPPO for patent infringement in Finland, Germany, Sweden, the United Kingdom, the Netherlands and other countries. The litigation has put additional pressure on the company's European operations.

Future plans

Despite withdrawing from Germany and the United Kingdom, OPPO is still optimistic about the European market. The company plans to invest precisely and efficiently in its key markets in the region. OPPO is confident that it can continue to expand its business and gain a larger share of the European smartphone market.

The smartphone industry is highly competitive, and companies must adapt to changing market conditions in order to remain profitable. While OPPO's decision to withdraw from Germany and the United Kingdom may come as a surprise, it is a strategic move that will allow the company to focus on its key markets and ensure long-term growth.

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