Government Concerns Prompt Oppo, OnePlus, and Realme to Become Separate Entities in India

BBK Electronics Corp, the Chinese electronics giant that owns Oppo, OnePlus, and Realme smartphone brands, has announced its decision to split the three brands into distinct entities. This move is aimed at restructuring its operations in India, as the company is apprehensive about potential government intervention.

According to a report in The Economic Times, BBK Electronics is looking to de-risk its Indian business, and now Oppo, OnePlus and Realme operate in India as “independent entities with sales counted on their own books”.

The report adds that BBK is concerned about the Indian government’s actions against Chinese companies and therefore wants to divest the three brands in the country. In addition, the Indian market in particular plays a significant role in the company’s overall sales, as four of the top five smartphone players in India are Chinese and two of the top five are owned by BBK Electronics Corp. .

“BBK is wary that the way the government is taking action against Chinese companies, any serious and additional action against Oppo Mobiles India will affect the business of the three big brands,” The Economic Times newspaper quoted a source as saying.

Now Oppo India, which handled the sales and distribution of all three brands, now only takes care of its own sales. Therefore, OnePlus Technology India and Realme Mobile Telecommunications India handle their own books, sales and distribution.

Oppo is also said to be considering changing how it facilitates its operations in the Indian market with a new model that aims to “sell directly to major retailers and distributors”. The report stated that “Oppo Mobiles sold to entities (known in industry parlance as agents) owned and operated by Chinese nationals in several states, who in turn sold to retailers.”

Likewise, OnePlus and Realme are looking for new partners to organize their operations.