Things are not going well for China-based tech giant Oppo. Having experienced economic difficulties, the company decided to close its subsidiary Zeku, which focuses on chip design.
Things are not going well for China-based tech giant Oppo. Having experienced economic difficulties, the company decided to close its subsidiary Zeku, which focuses on chip design.
Recently, Oppo has not been on the agenda with negative news. The technology giant, which plans to shrink or even suspend its activities in the European market, has found the solution to stop the activities of its chip development subsidiary Zeku in the face of economic uncertainty and a smartphone market that is constantly rising and falling.
The move has raised concerns for other Chinese companies working in the semiconductor market as it navigates a challenging industry environment. Zeku has played a pivotal role in Oppo’s chip development with a product line that includes core application processors, short range communications, 5G modems, radio frequency, ISPs and power management chips.
Zeku’s decision to cease operations was announced in an official statement, citing global economic uncertainties and the unpredictable smartphone market. Oppo acknowledged the difficulty of the decision. They expressed their commitment to managing the situation responsibly while continuing to deliver quality products and value to customers. At first, there were rumors that Oppo would withdraw from Europe. Now the cessation of Zeku’s operations raises even more concern.
Although Oppo is one of the largest smartphone brands in China and ranks fourth in global shipments, its shipments have dropped drastically. Shipments fell 22% last year, totaling 103 million units, according to data from IDC. The company can foresee that this decline will continue and it wants to prepare itself for the challenges it will face in the future. Financial savings turn out to be one of the easiest ways to do this.
Source: Egirisim / Prepared by Irem Yildiz