OPPO merges with OnePlus and Realme

Oppo is set to merge its subsidiaries OnePlus and Realme into a single unit under its corporate structure, according to reports from Chinese tech media. The move aims to streamline product development and research efforts in response to mounting costs and intensifying competition in the global smartphone market. The merger will place Realme's operations under the leadership of its founder and CEO, Li Bingzhong, while product development will be steered by Li Jie, the president of OnePlus China. Both executives will report to Oppo's chief product officer, Pete Lau.

As part of the restructuring, Realme's research and development teams will be integrated into Oppo's broader hardware divisions, eliminating Realme's previous independent engineering operations. These changes are designed to optimize the company's engineering and supply chain processes in light of rising component costs. Reports indicate that storage component prices have increased by approximately 25%, inflating overall bill-of-materials expenses.

Strategically, the merger seeks to consolidate overlapping functions within Oppo’s brand portfolio. OnePlus, historically focused on Western markets, will shift its primary attention towards China. Realme, conversely, will target global markets, a reversal of the roles that have characterized the brands’ market strategies over the past decade. This reconfiguration allows Oppo to refocus brand positioning and reduce operational redundancies.

The consolidation comes as the global smartphone market experiences shrinkage, compelling manufacturers to reconsider cost structures and market strategies. With duplication between OnePlus and Realme potentially eliminated, Oppo aims to leverage economies of scale to maintain competitive pricing. However, this shift also raises questions about the future identity and strategic direction of OnePlus, which has built a reputation for fast software updates and aggressive pricing—a model that might be challenged by more centralized decision-making.

While the merger is broadly reported, Oppo has not yet publicly confirmed these plans in an official statement. Nevertheless, the structural logic follows existing market dynamics. In Europe, OnePlus is reportedly withdrawing by April 2026, although it has promised continued after-sales support for existing customers. The status of the brand in North America remains unclear, with conflicting reports about possible exits or strategic shifts. As the merger progresses, stakeholders will be keenly observing how rapidly the restructuring solidifies and what that means for product availability and support in key markets.