China's OnePlus Merges with Oppo... Strengthening Mid-Range Smartphone Offensive

[Asia Economy Reporter Seulgina Jo] Chinese smartphone manufacturer OnePlus has officially announced its merger with OPPO. Both companies are smartphone manufacturers under China's BBK Electronics. OnePlus expects that while continuing to operate its brand independently, this merger will enable faster and more stable software updates.

According to OnePlus, CEO Pete Lau formalized this announcement on the 16th (local time) by posting "A New Journey for OnePlus" on the official website.

CEO Lau stated, "We are now at a turning point for the future of OnePlus," adding, "We will secure more resources to create better products." He also anticipated, "Efficiency will improve, including providing faster and more stable software to OnePlus users."

This is an additional move following the merger of the hardware research and development (R&D) departments earlier this year. At that time, OnePlus and OPPO had agreed to continue software development independently. CEO Lau explained, "Since overseeing the product strategies of OnePlus and OPPO last year, many teams have been integrated with OPPO to achieve more efficient operations and utilize additional resources," adding, "Seeing positive impacts from these changes, we decided to merge our organization with OPPO."

Brand operations will remain independent. He added, "We will continue to launch OnePlus products, hold events, and receive feedback through the same OnePlus channels as before," emphasizing, "OnePlus's commitment remains the same."

Based on last year's smartphone shipment volumes, OPPO holds a 10% market share, ranking fifth globally. OnePlus's share is still in the single digits but has shown strong growth by emphasizing cost-effectiveness in markets such as the United States and India. Industry insiders have noted that differentiation between the two brands has not been prominent in recent years, leading to criticism that "OnePlus is just an OPPO smartphone with a different name."

IT media outlet PhoneArena commented, "The merger of OnePlus and OPPO could lead to lower price ranges for OnePlus smartphones," anticipating that it will establish a position similar to Huawei and its mid-to-low-end brand Honor in the past.