Oppo, a Chinese smartphone manufacturer, announced that it will close its chip design division due to unpredictability in both the worldwide economy and the market for cell phones.
The business, which is among the top local cell phone manufacturers in China, said that it would shut down Zeku in 2019. One of its products is the MariSilicon X chip, a neural processing unit (NPU) that enhances visuals for mobile video and photography.
We must make challenging adjustments for long-term development because of the uncertainty in the global economy and the smartphone sector, a company representative stated.
The biggest smartphone market globally, China, is still reeling from one of its worst downturns ever as budget-conscious shoppers continue to hold off on major purchases even after zero-Covid limits were lifted in the nation.
Smartphone shipments decreased 14% in 2022, and for the first time in ten years, overall unit shipments went below 300 million. According to research firm Canalys, total smartphone shipments in the first quarter decreased 11% year over year to 67.2 million units, the lowest quarterly total since 2013.
After the United States hobbled Huawei Technologies’ (HWT.UL) cellphone sector with prohibitions that prohibited it from obtaining crucial components, Oppo and its Chinese rivals, such as Xiaomi, established internal chip design units in an effort to become self-sufficient. BBK Electronics, which also owns Vivo, another popular Chinese smartphone company, is the owner of Oppo.
In conclusion, the Chinese cell phone manufacturer, Oppo, has made the difficult decision to shut down Zeku, one of its products, due to the challenging circumstances in the global economy and the smartphone sector. The company acknowledged the uncertainty and took proactive measures for long-term development.
The smartphone market in China, the largest globally, experienced a significant downturn, with smartphone shipments declining by 14% in 2022, marking the first time in a decade that overall unit shipments dropped below 300 million. This decline continued into the first quarter of the following year, with a further 11% decrease in shipments.
The impact of restrictions placed on Huawei Technologies by the United States, preventing them from accessing crucial components, prompted Oppo and other Chinese rivals, such as Xiaomi, to establish internal chip design units to achieve self-sufficiency. Oppo’s parent company, BBK Electronics, also owns Vivo, another prominent Chinese smartphone brand.
These challenging market conditions and strategic decisions highlight the dynamic nature of the smartphone industry and the efforts of Chinese manufacturers to adapt and thrive in a competitive landscape.
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