China’s phone giant Oppo disbands chip design unit as shipment slumps

Variety
12-05-2023 | 09:15
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China’s phone giant Oppo disbands chip design unit as shipment slumps
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China’s phone giant Oppo disbands chip design unit as shipment slumps

Chinese smartphone giant Oppo is disbanding its young chip design unit Zeku as weak global demand forces major handset manufacturers to cut costs and restrategize.

The decision comes as a surprise to those who believe the phone maker is bolstering its in-house chip development as rising geopolitical tensions with the US threatens to cut Chinese firms off key suppliers. In the foreseeable future, Oppo will have to revert back to relying on third-party chip partners.

While Oppo managed to finish Q1 2023 as the world’s fourth-largest smartphone vendor, its shipment dropped 8 percent, according to market research firm Canalys. Other than Apple, all five of the top phone makers saw a decline in shipments. All in all, the global smartphone market shrank by 13 percent in the quarter.
 

China

Phone

Giant

Oppo

Disbands

Design

Unit

Shipment

Slumps

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