OnePlus Likely To Expand Offline Presence And IoT Business After Merger With Oppo

Even though OnePlus announced its integration into Oppo, it said that it will operate independently. In fact, analysts believe that the integration is expected to help OnePlus expand its offline presence into the country. Also, it will expand the company's Internet of Things (IoT) business.

Notably, OnePlus and Oppo already integrated their research and development teams, ever since Pete Lau took responsibilities for both brands.

"Since then, we have integrated a number of our teams together with Oppo to better streamline our operations and capitalize on additional shared resources. After seeing a positive impact from those changes, we've decided to further integrate our organization with Oppo," Lau said in a blog post.

He said that it will allow OnePlus to create a better product and both companies will continue to compete in all markets, where they are operating, reports ET.

Research Firms Views On OnePlus And Oppo Integration

This move will allow OnePlus to increase its growth as it is focussing on brand positioning. "By tapping into, and leveraging Oppo's R&D capabilities, OnePlus will be able to attain economies of scale, and potentially poised to grow better in the smartphone plus IoT connected living era," said Prabhu Ram, head at market intelligence firm CMR.

However, Tarun Pathak, Research Director at Counterpoint believes that their high chances both companies might bring similar services as hardware is a bit difficult to differentiate. He added that OnePlus is a premium brand in the country and a change in strategy is likely to affect the growth of the company.

On the other hand, IDC research director Navkendar Singh states the Oppo might get a chance to strengthen its IoT presence after this integration. In addition, he states that OnePlus will start providing updates faster. Also, there are chances that both will merge the mid-premium segment.

Both companies have their research & development centers in India. In addition, both are planning to invest hugely in their assembly lines.

It is worth noting that Oppo has a huge factory in Noida, where other Chinese smartphone players are also assembling their devices. However, this integration is expected to allow both to increase their market share as competition has been increased.