- OPPO has become the third-biggest smartphone brand in Mexico and fifth-biggest in Latin America after less than three years in the region.
- OPPO launched its Find N2 Flip in Mexico recently, the first time in the Americas region.
- Tough market conditions in the region this year may pose a challenge to OPPO’s expansion plans.
In March 2020, just as the world was entering COVID-19 lockdowns, OPPO was landing in the LATAM market through Mexico. Since then, it has woven a strong relationship with the Mexican consumer. According to Counterpoint Research’s Market Monitor report, OPPO was ranked tenth in the Mexican market in Q3 2020 in terms of shipments. But in just less than a year, it took a giant leap to rank among the top three brands in Q2 2021. OPPO continued on the growth path and was a solid third-biggest brand in the Mexican market in Q4 2022 and fifth in the Latin American region.
OPPO’s Shipment Ranking in Mexican Market
Source: Counterpoint Research Q4 2022 Market Monitor
Mexico is one of the most competitive markets in the LATAM region, as most brands choose to enter the region through this country. But it is also a complex market as it has a strong operator, Telcel, that has more than 60% of the users and 70% of the mobile services revenue. The operator also manages the retail channel closely.
OPPO’s initial growth in Mexico was driven only by Telcel, as it had paired up with the operator. But now it is going for the rest of the Mexican carriers and the open channel that has been growing in the country. OPPO has the biggest team of in-store sales representatives, and the brand is visible at almost every big retailer and carrier store in the Mexican market.
OPPO’s Shipment Ranking in LATAM Market
Source: Counterpoint Research Q4 2022 Market Monitor
Although OPPO is already successful and appreciated by Mexican consumers, for the rest of Latin America, the brand is still a stranger. Therefore, it aims to repeat this success in the rest of LATAM.
4G technology still accounted for 83% of the sales in the region in 2022. Therefore, OPPO has included mostly 4G smartphones in its portfolio for the region. Besides, the portfolio is mostly focused on growing its share in the popular low-mid to mid-high price segments. There are no ultra-premium or entry-level smartphones. OPPO even launched an older flagship last year. But surprisingly, the brand launched its flagship Find N2 Flip in the region last week.
OPPO Find N2 Flip launched in Mexico
OPPO launched its Find N2 Flip smartphone in Mexico last week. This can be considered a huge effort for the company, as the product has been launched in only a few markets, including Europe, China, India, Thailand, and a few other markets in Southeast Asia. Mexico is the only market in the Americas to see a Find N2 Flip launch. This shows the commitment the brand has toward the LATAM market in general and Mexico in particular.
The OPPO Find N2 Flip has a GLOMO award-winning hinge that is gapless when closed. The crease is perhaps the most imperceptible available in the LATAM market. The device’s large cover display makes it easier to use when shut.
The smartphone has remarkable cameras – 50MP in the back and 32MP for the selfie camera, besides being paired with the MariSilicon X Imaging NPU that delivers exceptional photos. It has a 4300mAh battery with fast charging. This device is also a big win for MediaTek, as it is powered by the Dimensity 9000+.
On the downside, the launch price of MXN 24,999 (~$1,383) does not seem competitive enough. Besides, the device will only be available at Telcel Mexico initially. Foldables are the fastest-growing form factor in the ultra-premium segment (>$700). in Q4 2022, the clamshell category saw 201% YoY growth in Mexico, according to Counterpoint data.
OPPO is the third brand in LATAM to launch a clamshell product. Motorola was the first one, followed by Samsung. Currently, Samsung’s Flip 4 is the absolute leader of this format in LATAM, including Mexico.
What next?
Despite its success in the Mexican market, OPPO is still an emerging brand for the rest of the region. It might face some challenges this year. The LATAM smartphone market dropped 5.5% in 2022 and is forecasted to drop another 5% in 2023. This decline will affect all the markets in the region, including Peru and Colombia, OPPO’s focus countries for 2023.
Therefore, OPPO will try to expand in a contracting market. So far, the brand has managed to weather all headwinds. Colombia is the third most important market in the region. It has low import barriers and sales are almost equally distributed between operators and open channels. Peru is mostly an operator-dominated market. Both Colombia and Peru have lower ASPs compared to Mexico, but consumers in the two countries always welcome new brands to get the best smartphone experience.
