The successful smartphone brand in Vietnam is in danger of disappearing completely in Europe

Currently, users will not be able to access Oppo’s websites in Germany. Instead, the website simply displayed a brief message: Product information is currently unavailable.

This unusual development stems from the fact that the Chinese phone maker lost a lawsuit against Nokia. The Finnish telecom equipment supplier filed a complaint accusing Oppo of using technology patents without paying royalties. In August, a German court ruled to stop selling Oppo phones.

The Chinese phone brand entered the European market in 2018 and considers Germany one of the key markets in the region. Therefore, the court’s ruling is a blow to the company’s business strategy.

Nokia is expected to continue to file additional lawsuits in European countries other than Germany, meaning that Oppo-branded smartphones could be banned from being sold in other markets.

“Europe is an important region and the company looks forward to providing consumers there with innovative products in the future,” said Billy Chan, Vice President of International Business at Oppo. However, trouble with Nokia could make this ambition disappear.

Outside of Europe, Oppo has also faced challenges in India, where it entered in 2014. In July, the Indian government imposed a fine of Rs 43.8 billion (about $550 million). against local Oppo affiliates for tax evasion.

The fine is part of a series of crackdowns against Chinese smartphone makers in India, stemming from geopolitical tensions between the two countries. Previously, in April, Xiaomi was seized 725 million USD.

Oppo was founded in 2004 in Dongguan, Guangdong Province, China. The company was originally an audio-visual division spun off from electronics manufacturer BKK. The company’s founder and CEO, Tony Chen, is a former executive at BBK.

Vivo, another low-cost smartphone brand, is also an offshoot of BKK, but works under separate management teams and often competes with each other in the market.

Oppo in the early days only sold MP3 players and switched to smartphones in 2011, focusing on the low-cost segment but outstanding design and many complex features.

In Vietnam, with a marketing strategy that covers almost all TV shows and advertisements with the hottest faces in showbiz, Oppo has brought great success to Oppo. Born later than other brands, the mobile phone company from China is loved by many young people, especially students.

Over the years, with Huawei besieged by sanctions, Oppo has had the opportunity to capture a portion of its rival’s customers and grow further. In 2016, the company was the leader in the Chinese smartphone market.

Reference: Nikkei Asia