In a significant development within the smartphone industry, Realme has announced its return to operating as a sub-brand under Oppo, marking a reversal from its independent stance since 2018. This move, Reuters reports, aims to foster closer collaboration between the two entities, both of which fall under the umbrella of Chinese conglomerate BBK Electronics. The integration is set to enhance operational efficiencies while maintaining distinct market identities for each brand.
Realme and Oppo's relationship
Realme was originally launched as an Oppo sub-brand in 2018, targeting younger consumers with affordable, feature-packed devices. It quickly gained traction in markets such as India, Southeast Asia, and Europe, positioning itself as a challenger to established players. However, Realme spun off into an independent brand shortly after, allowing it to pursue aggressive expansion strategies. Oppo, meanwhile, has focused on premium and mid-range offerings, with both companies sharing resources from their parent firm BBK Electronics, which also owns Vivo. This shared lineage has often led to synergies in supply chains and technology, but recent market pressures have prompted a reevaluation of their structures.
Reasons for return as sub-brand
The primary driver behind this shift is the need to streamline internal resources and reduce operational overlaps. According to industry sources, the realignment will allow for better collaboration across teams, clearer leadership roles, and improved execution of strategies. By pooling resources, the companies aim to cut costs in a competitive landscape marked by rising component prices and slowing demand. This comes at a time when smartphone makers are grappling with global supply chain challenges, making efficiency gains crucial for sustaining growth. Realme's founder and CEO, Sky Li, will oversee the overall operations of the sub-brands, while Li Jie continues to lead OnePlus in China, ensuring continuity in key regions. The decision also reflects broader industry trends where conglomerates like BBK are consolidating to better compete against giants such as Samsung and Apple.
Changes to after-sales and service networks
A key aspect of the integration involves Realme fully connecting to Oppo’s after-sales service network. This is expected to broaden service coverage and provide more consistent support for users, particularly in emerging markets where Realme has a strong presence. DCS from the Oppo group emphasised that this step is central to the new structure, stating that Realme’s integration into Oppo’s system will enhance user experience without disrupting ongoing operations. Consumers can anticipate smoother access to repairs and support, potentially alleviating concerns in regions with limited service centres.
Implications for products and market positioning
The reintegration is not anticipated to alter Realme’s product roadmap or market positioning significantly. Upcoming launches, including the Realme Neo 8 slated for release in China this month, will proceed as planned. Oppo will remain the primary brand, with OnePlus and Realme serving as complementary sub-brands, each retaining their unique strategies—OnePlus focusing on high-end innovation and Realme on value-driven devices for youth demographics. For consumers, this could mean more integrated ecosystems and potential cross-brand synergies in software and features. However, in a market facing shipment pressures, the move might help BBK bolster its competitive edge, especially in price-sensitive segments where Realme has excelled.
