Oppo Mobiles has gone beyond Sony, the largest Japanese electronics company and Micromax, the biggest domestic mobile maker, by income. This comes after its trades increased more than 7x at the time of FY17. This means dominance of China in the smartphone market of India. This comes although executives of industry claimed that growth of Oppo has in fact slowed down in 2017 owing to slashing down on spending, competitor Chinese company Xiaomi’s rapid development, and effect on sales owing to Indo-China frictions.
As per the latest regulatory filings of the company, Oppo Mobiles India witnessed increment in sales to almost Rs 7,974.29 Crore in the year concluded on March 2017, an increment of 754% from Rs 933.74 Crore in the last fiscal.
“Oppo was grabbing a lot of cash in the Indian industry previous fiscal in addition to Vivo, be it via funding of marquee cricketing tournaments, advertising blitzkrieg, buying out retail stores to position its smartphones and branding, and paying retailers huge margins.
“All these resulted in a huge increment in sales. On the other hand, this fiscal its development rate has dropped,” claimed a senior executive of the industry. One more executive claimed that performance of Oppo in this fiscal is praiseworthy considering demonetization in November last year took the steam out of handset trades when sales of the market had dropped. “But this year, growth rate of Oppo has dropped down all over the retail chains and neighborhood shops. Therefore, Oppo which has hugely been offline trade aimed is now attempting to be destructive online and operating discounts and promotions on Flipkart and Amazon,” he claimed.
Micromax, on the other hand, posted a 42% dip in income previous fiscal to Rs 5,613.97 Crore while the 2nd biggest domestic maker’s, Intex, income dropped by 30% to Rs 4,364.08 Crore.