Core Viewpoint - OPPO is facing significant challenges in the competitive smartphone market, with a notable decline in market share and sales, particularly in the high-end segment, as it struggles to maintain its position against rivals and adapt to changing consumer preferences [1][2][10]. Group 1: Market Position and Performance - OPPO's market share in the Chinese smartphone market has dropped from 19.6% in Q1 2023 to 15.7% in Q1 2025, reflecting a decline from first to fourth place [2][12]. - In the European market, OPPO's share of foldable smartphones fell by 63% year-on-year, dropping from third to seventh place [1]. - Global data indicates that OPPO is one of the few brands among the top five smartphone manufacturers experiencing a decline in shipment volume, with a drop of 5% to 9% [1][10]. Group 2: Strategic Shifts and Challenges - The shift from a "product ocean" strategy to a "hit product" logic highlights the changing competitive landscape, where innovation efficiency and scale are crucial [3][7]. - OPPO's early success was driven by a diverse product matrix and rapid market penetration, but the current market saturation has diminished the effectiveness of this approach [5][7]. - The company has struggled to establish a strong foothold in the high-end market, with its flagship products facing price drops and competition from established brands like Apple and Huawei [10][11]. Group 3: Technological and Brand Positioning - OPPO's attempt to enhance its high-end offerings with the Find X8 series saw a 66% increase in first-quarter sales compared to the previous generation, but the brand still lacks a strong premium image [10][11]. - The discontinuation of its chip design company has hindered OPPO's ability to differentiate itself in the high-end market, exposing weaknesses in its strategic direction [11]. - The company's pivot towards AI technology, including the establishment of an AI center and the introduction of AI features in its products, represents a new direction, but it faces stiff competition from other brands also investing in AI [13][14]. Group 4: Distribution and Market Dynamics - OPPO's traditional distribution channels, particularly "couple stores," are under pressure as consumer preferences shift towards high-end retail environments [12]. - The decline in the effectiveness of these channels poses challenges for OPPO as it seeks to penetrate the high-end market, where competitors have already established a strong presence [12]. - The overall smartphone market is experiencing a transformation, with a focus on premium products and advanced technology, making it imperative for OPPO to adapt its strategies accordingly [12][14].

Core Viewpoint - OPPO is making significant strides in the high-end smartphone market, but faces challenges in establishing a strong competitive position against established players like Apple and Huawei [5][8][20] Group 1: High-End Market Performance - OPPO's new model, the Reno 14, continues to focus on imaging technology, simulating popular effects [1] - The high-end smartphone segment in China has seen a sales share increase to 28%, making it a critical battleground for manufacturers [2][3] - The Find X8 series has achieved over 60% increase in shipment volume compared to its predecessor, significantly boosting OPPO's sales in the 4K+ price segment [3][5] Group 2: Challenges in High-End Strategy - Despite initial successes, OPPO's market share in the high-end segment remains low, with only 7.1% in the foldable phone market [5][8] - OPPO's high-end strategy faces challenges in three areas: technology, brand perception, and retail presence [9][10] - The company has not yet established a strong enough brand identity to compete effectively with entrenched competitors [15][16] Group 3: Technological and Brand Development - OPPO has invested in various technologies, including imaging and AI, to enhance its product offerings [10][18] - The shift in consumer preferences towards comprehensive user experiences highlights the need for OPPO to improve its brand perception [11][13] - OPPO's lack of self-developed chips and operating systems may hinder its high-end ambitions [14] Group 4: Retail Strategy - OPPO is focusing on enhancing its retail presence, having opened 2,000 Mall stores to improve customer experience [17] - The company needs to expand its high-end retail presence in lower-tier cities to capture a larger market share [17] Group 5: AI Integration - The rise of AI technology is seen as a potential game-changer for the smartphone industry, with OPPO exploring AI features in its products [18][19] - The competitive landscape will increasingly depend on the unique AI capabilities that manufacturers can offer [19][20]