Oppo’s market share in the smartphone segment has declined significantly in recent years, especially in Indonesia and neighboring Southeast Asian countries. According to gadget analyst Herry SW, this drop is evident from various research institutions that track market rankings. He confirms that Oppo has indeed slipped in market share rankings but points out that the company is still maintaining solid profitability.
Herry explains that Oppo’s continued profit generation is due in large part to the brand’s focus on higher-end segments. Unlike brands chasing volume-based sales, Oppo targets the flagship market, often offering foldable and rollable smartphones with premium features. These include cutting-edge camera technology supported by partnerships with Hasselblad, as well as advanced photo editing tools powered by artificial intelligence.
Focus on Premium Smartphones
Oppo’s strategic emphasis on flagship devices translates to lower sales volume but higher revenue per unit sold. Models like the Oppo Reno 15 series showcase innovations in foldable design and top-tier camera performance. This approach keeps Oppo’s brand value strong, despite reduced unit sales compared to competitors that focus extensively on entry-level and mid-range phones.
Herry remarks, “Even though the volume looks low, the value remains quite good.” This suggests that Oppo maintains profitability by catering to consumers looking for premium experience and advanced features rather than competing in price-sensitive segments.
Competitive Landscape and Market Share Dynamics
The latest Omdia report illustrates how Oppo’s position has shifted in the Southeast Asian market. Once dominant in Indonesia, Oppo now ranks third or even fourth, especially when counting the combined market share of Transsion’s three brands, which have made remarkable inroads. Similar trends are visible in the Philippines and Vietnam, where Oppo trails behind players like Xiaomi, Samsung, Apple, and Transsion group brands.
In Malaysia, Oppo falls to fifth place behind Xiaomi, Samsung, Honor, and Vivo, indicating stiff competition in the region. However, Oppo performs relatively better in Thailand, holding the second position just behind Samsung. This disparity reflects how regional market preferences and competitor strategies influence Oppo’s performance.
Le Xuan Chiew, Research Manager at Omdia, explains the trend, “Oppo’s products resemble Vivo’s approach, focusing on value rather than volume, while HONOR and Xiaomi prioritize increasing volume to broaden brand penetration.” This distinction points to Oppo’s intentional strategy to deprioritize mass-market saturation in favor of capturing higher-margin segments.
Challenges From Entry-Level Competitors
One key reason for Oppo’s market share erosion is its lesser involvement in entry-level devices. From 2019 to 2022, Oppo enjoyed leadership by balancing premium offerings with competitive entry-level releases. However, its current focus on flagship phones means tougher competition in the affordable segment where many consumers reside.
Herry suggests that Oppo could regain market share by reinvigorating its entry-level product lineup. “If Oppo wants higher market share, they need to frequently launch entry-level phones,” he says. However, he also acknowledges that from a pure business perspective, this segment may not be lucrative enough for Oppo to prioritize.
Summary of Contributing Factors
- Strategic Focus on Premium Flagship Models: Oppo prioritizes innovation in foldable and high-end smartphones.
- Strong Profit Margins Despite Lower Volume: The focus on value over volume helps maintain profitability.
- Intense Competition: Brands like Transsion, Xiaomi, Samsung, and others aggressively target entry-level and mid-segments.
- Reduced Entry-Level Offerings: Oppo’s slowdown in launching affordable phones contributes to lost market share.
- Regional Variations: Oppo’s market position varies considerably across Southeast Asia, performing better in some countries than others.
Looking Forward
Oppo’s decline in market share reflects broader shifts in the competitive smartphone landscape. To improve ranking, Oppo might need to balance its flagship innovation with renewed attention on volume-driven market segments. The company’s collaboration with Hasselblad and investment in AI-driven camera technology position it well in the premium category. However, if entry-level market pressure continues, Oppo may have to reconsider its strategy to sustain growth.
This evolving scenario highlights the challenge for smartphone brands: balancing profitability with market penetration. Oppo’s current path underscores a focus on quality and advanced technology, but the brand’s ability to reclaim higher market share could depend on reengaging budget-conscious consumers.
As consumer preferences evolve, Oppo’s journey will be a key indicator of how flagship-centric strategies fare in highly competitive regions like Indonesia and Southeast Asia.
