OPPO, one of the leading smartphone manufacturers in China, plans to exit its operations in Germany and the UK. The company will retain only a handful of employees to run core operations and the plan is expected to be implemented by mid-2023. The move came in tough market conditions in Europe, where high selling costs and declining consumer purchasing power are making it harder for companies to profit.

OPPO’s decision to downsize its European operations reflects the challenging environment facing smartphone manufacturers in the region. According to Counterpoint Research, smartphone sales in Europe will fall 17% in 2022, making it the worst year for the industry since 2012. This trend was particularly evident in the fourth quarter of the year, when OPPO’s shipments fell 39% year-on-year.

The decline in smartphone sales in Europe was driven by a number of factors, including inflation, which has led to a decline in consumers’ purchasing power. In addition, the high operating costs of doing business in the region make it difficult for companies to achieve profitability.

Despite these challenges, OPPO remains committed to the European market and plans to invest in certain and effective key markets in the future. The company recently launched the global version of the OPPO Find N2 Flip in London, UK, and showcased various products and technologies at the Mobile World Congress in Barcelona, ​​Spain.

However, OPPO also faces the challenge of filing a patent lawsuit in Europe. Nokia sued OPPO for patent infringement in Finland, Germany, Sweden, England, the Netherlands and other countries after the company entered the European market.

Industry experts suggest that in response to challenging market conditions, smartphone manufacturers will need to focus on innovation and differentiation to stand out in a crowded market. Companies will also need to work closely with carriers and retailers to effectively market and distribute their products in the region.