OPPO and Vivo Entrust ODM or Enter the Low-end Mobile Phone Market

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Why should OPPO and vivo enter the low-end mobile phone market?

Among China’s first four brands of mobile phones, for 2017 years, about sixty percent of Xiaomi and Huawei mobile phones are sold in the Chinese market in last year, while OPPO and vivo more than seventy percent. So they all still have a high dependency for China’s market.

In the first three quarters of 2017, shipments of the Chinese mobile phone market continued to grow steadily. However, in the fourth quarter of last year, shipments of the Chinese mobile phone market plummeted and fell into a cold winter. Huawei and Xiaomi made slight gains in the fourth quarter, while shipments of OPPO and vivo fell by about 16% and 7% respectively. At that time, the low-end market is becoming a key market for shipments.

The ODM agent can reduce the cost of mobile phones

According to the industry chain, Huawei had about 60 million phones powered by ODM last year. Xiaomi phones are all made by ODM. By relying on ODM to make them cheaper to manufacture, they are able to compete fiercely on the lower end of the market.

OPPO and vivo payed main efforts in the mid-market and higher operating costs have led to their phones being less cost-effective than Huawei and Xiaomi, which is why they are less competitive in the online market than in the latter.

Now, OPPO and vivo leave some phones to the ODM to reduce the cost of mobile phones. In order to win the shipments, they are more likely to enter the low-end handset market dominated by Huawei and Xiaomi. These mobile phones with price advantage may go online channels. Whether OPPO and vivo will launched Internet brand with the current brand segmentation like Huawei is worthy of attention. From the current record, Huawei has successfully separated Internet brand glory from Huawei brand and obtained user’s approval.

Of course, this is only the information sent by the industrial chain, not the official information released by OPPO and vivo. It can’t be confirmed before their products to be listed.

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