OPPO’s subsidiary ZEKU, which was set up to manufacture their own chips, is reported to have been closed down. The decision to shut down the company was made suddenly, despite ZEKU advertising job vacancies and operating as usual until the recent announcement.
In a statement made on Friday, OPPO revealed that the shutdown of ZEKU was a “difficult decision”. Digital Chat Station shared that OPPO’s ZEKU company has been shut down on Weibo (Chinese social media platform).
So what will happen to OPPO now?
It is actually very useful for a tech company to produce their own chip, OPPO could have utilized its own chip instead of purchasing one from another company if sufficient research and development investment had been made. The reasons for the closure of ZEKU remain unclear, but it appears that the chips produced by OPPO were not generating enough profit compared to the investment made.
With the inability to manufacture their own chips, OPPO may have to resort to purchasing chips from other brands, which could potentially result in higher pricing for future OPPO phones. It is currently difficult to determine the company’s situation.
Based on the statistics recently shared, it is apparent that OPPO is experiencing a decline in its user base. There are multiple factors contributing to this, with one of the most significant being OPPO’s situation in Europe.
Following a lawsuit initiated by Nokia, the sale of OPPO branded phones which include OnePlus as well, is prohibited in Germany. Although OPPO continues to sell its products in other European countries, Germany was a substantial market for OPPO and OnePlus devices.