OnePlus Exits US, Europe Amid Global Smartphone Slump
- tech360.tv
- 2 hours ago
- 2 min read
Chinese handset manufacturer OnePlus is withdrawing from the United States and European markets. This decision, reported by the South China Morning Post, follows a period of significant difficulty for the global smartphone sector, primarily attributed to an ongoing memory crisis. The company, which operates under Chinese smartphone maker Oppo, has confirmed the cessation of new product roll-outs in these regions.
OnePlus stated its intention to maintain support for existing devices in Western markets. This includes continued provision of software updates, security patches, and all necessary after sales service. The organisation did not, however, specify a precise timeline for the complete cessation of its operational activities in these territories.
But this strategic shift extends beyond OnePlus. Oppo, the parent company, has concurrently announced adjustments to its other smartphone brands. OnePlus's product roadmap within China is to remain unaffected, according to a company statement. Oppo's budget smartphone subsidiary, Realme, will discontinue new product launches in China, instead redirecting its focus towards overseas markets. These corporate decisions aim to consolidate resources and foster a more unified global product strategy.
The wider global smartphone market is currently experiencing substantial challenges. Unprecedented cost increases and pervasive supply shortages, stemming directly from the memory crisis, have severely impacted manufacturers. Data released by Counterpoint Research indicates that worldwide smartphone shipments fell by eleven per cent in the recent quarter. This figure represents the lowest second quarter shipment levels recorded in thirteen years.
And the impact has been pronounced for major players. Oppo, recognised as the world's fourth largest smartphone vendor, saw a collective decline in shipments for its brands, including OnePlus and Realme. Shipments for these combined entities decreased by 17.5 per cent year on year during the second quarter, an IDC report revealed.
In China, which remains the world's largest market for smartphones, Oppo's shipments experienced a 9.7 per cent reduction. IDC data further illustrates that Oppo's performance placed it behind rival manufacturers Huawei and Apple within that market. Huawei registered nearly a twenty per cent growth in shipments, whilst Apple saw an increase of approximately twenty five per cent, according to the same IDC figures.
So, OnePlus's history in Western territories highlights a significant market presence. Since its initial introduction in 2014, the brand established a reputation for challenging established players such as Apple and Samsung. It cultivated a dedicated customer base by offering high performance devices at competitive prices, appealing to consumers seeking premium features without exorbitant cost.
The company previously faced regulatory obstacles across Europe. These included patent disputes, which necessitated a temporary halt of sales in several markets, notably Germany. After a hiatus lasting nearly eighteen months, sales in Germany recommenced. This followed Oppo's global 5G patent cross licensing agreement with the Finnish telecommunications corporation Nokia, which resolved their prolonged legal disagreement.
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.
Source: SCMP
