OnePlus plans to withdraw from all markets outside China, with operations in the US and Europe expected to cease imminently, according to a report by Bloomberg. The phased exit is set to begin within days, while the brand will continue to operate in India until 2027.
Key Details
The decision is part of a broader restructuring by OnePlus's parent company, Guangdong Oppo Mobile Telecommunications Corporation Ltd. The report indicates that OnePlus's phone business has faced financial challenges, particularly in the US, Europe, and India, where it has struggled to compete against established rivals. Additionally, Chinese smartphone brands are experiencing increased scrutiny in the US, further complicating their market presence.
Oppo's strategy involves redirecting its European focus toward central Europe, rather than exiting the continent entirely. Meanwhile, Realme, another brand under Oppo, is preparing to withdraw from the Chinese domestic market and concentrate its efforts in the Nordic region, where it has seen stronger sales.
Background
The withdrawal from non-Chinese markets reflects a combination of commercial pressures and geopolitical factors. OnePlus is also dealing with a lawsuit from Apple Inc. alleging trade secret misuse, adding to its challenges in Western markets. The company will maintain its sales operations in China during this transition.
The exit of OnePlus from major markets could affect the smartphone sector, particularly in the US and Europe, where it has been unable to gain significant market share. This may create opportunities for competitors to capture its customer base. Investors will watch for further developments regarding Oppo's strategy in Europe and the impact of ongoing legal issues with Apple.