Oppo’s plan to merge again with Realme marks a significant move that could restore its dominance in Indonesia’s smartphone market. The reunion aims to consolidate resources and reduce operational costs for both brands, which are under the same parent company, BKK Electronics.
Realme had separated from Oppo in 2018 to establish itself as an independent vendor. However, since the beginning of 2026, rumors of Realme returning under Oppo’s wing have circulated widely. This strategic initiative is expected to boost Oppo’s market position in Indonesia and globally by leveraging combined strengths.
For several years after the split, Oppo maintained leadership in Indonesia’s smartphone market, continuing its winning streak globally from 2019 to 2023. Yet, recent years show a decline in Oppo’s market share, largely due to intense competition and changing consumer preferences. Analyst Aryo Meidianto pointed out that Oppo struggles to reclaim the number one spot alone but could achieve it again with Realme rejoining the fold.
Oppo has been focusing primarily on mid-to-high-end smartphones, including flagship models. This shift leaves a gap in the entry-level segment, which Realme is known to excel in. Meidianto emphasizes that Realme’s strength in affordable smartphones complements Oppo’s premium offerings. By combining their sales, Oppo could significantly improve its market share.
Key points about the merger benefits include:
1. Resource Optimization: Shared R&D, marketing, and supply chain efficiencies.
2. Cost Reduction: Lower operating expenses through unified production and logistics.
3. Market Coverage: Comprehensive product portfolio ranging from entry-level to flagship.
4. Competitive Edge: Enhanced ability to challenge rivals in Indonesia’s diverse market.
5. Brand Synergy: Leveraging both brand reputations to attract different consumer segments.
Despite Oppo’s market share drop, industry expert Herry SW notes that the company remains profitable. Oppo’s focus on flagship devices with advanced technologies like foldable phones and AI-powered camera features ensures good profit margins. Collaborations with renowned brands like Hasselblad also add premium value to Oppo’s device cameras.
However, to return to its former market leader status, Oppo needs to re-engage in the entry-level market actively. Historically, Oppo gained strong consumer loyalty by offering affordable smartphones. The combined portfolio with Realme could revive this approach, balancing volume sales with high-value devices.
Herry explains that although volume sales matter for market share, business strategy plays a crucial role. If entry-level market efforts don’t generate sufficient profit, Oppo might hesitate to invest heavily. The merger with Realme, therefore, offers a practical way to manage this segment without diluting Oppo’s premium brand focus.
Recent hardware launches such as the Oppo Reno15 Series demonstrate the company’s commitment to innovation and maintaining relevance in the technology landscape. Yet, the evolving marketplace demands responsive strategies that cater to varied consumer needs.
In summary, Oppo’s merger with Realme is a calculated strategy to combine strengths and recapture leadership in Indonesia’s competitive smartphone market. By integrating Realme’s affordability with Oppo’s technology and brand prestige, the unified company could reclaim the crown as the top smartphone vendor in the country. As the merger unfolds, observers will watch closely how effectively the two brands synchronize their products and market approaches to ensure sustained growth.
This move also reflects larger trends in the smartphone industry, where companies consolidate to better compete globally. Indonesia’s dynamic consumer base makes such alliances particularly impactful in regaining market leadership positions. The combined entity is poised to address multiple segments and price points, restoring Oppo’s presence as a dominant player.
