OnePlus Exits US, Europe Amid Global Smartphone Slump
- OnePlus will cease product roll-outs in the United States and European markets.
- The decision is linked to a global memory crisis affecting the smartphone industry.
- Oppo is adjusting its global strategy for both OnePlus and Realme.
- Global smartphone shipments experienced a significant decline in the recent quarter.
- OnePlus plans to continue software updates, security patches, and after sales service for existing Western market devices.
“After thorough evaluation, OnePlus has decided to conclude product roll-outs in Europe and North America,” the brand operated under Chinese smartphone maker Oppo said on its website on Thursday.
OnePlus said it would continue to support existing devices with software updates, security patches and after-sales service, without providing a detailed timeline for a complete shutdown of operations.
Oppo said in a statement on Thursday that “OnePlus’ product road map in China remains unchanged”.
However, Oppo’s other budget smartphone subsidiary, Realme, would “no longer launch new products in China” and instead focus on overseas markets, according to the statement. The moves were made to “further consolidate resources and enhance global product strategy synergy”.
The retreat comes as the global smartphone market is hit by unprecedented cost surges and supply shortages amid a memory crisis. Smartphone shipments worldwide tumbled 11 per cent in the June quarter, the lowest second-quarter levels in 13 years, according to data from Counterpoint Research on Monday.
Oppo, the world’s fourth-largest smartphone vendor, saw combined shipments with OnePlus and Realme tumble 17.5 per cent year on year in the second quarter, according to an IDC report on Monday.
In China, the world’s largest smartphone market, Oppo’s shipments declined 9.7 per cent, IDC data showed. It ranked behind Huawei and Apple, which grew nearly 20 per cent and 25 per cent, respectively, IDC data showed.
Since its debut in 2014, OnePlus built a reputation in Western markets as a challenger to Apple and Samsung, cultivating a loyal fan base with powerful devices for budget prices.
However, regulatory hurdles in Europe, including patent disputes, forced it to halt sales in markets including Germany. It resumed sales in Germany after a nearly 18-month hiatus following Oppo’s global 5G patent cross-licensing deal with Finnish telecommunications giant Nokia that ended their protracted legal dispute.