Oppo is doubling down on artificial intelligence (AI) to reignite smartphone demand across China and Europe, betting that smart features, rather than hardware upgrades alone, will define the next growth phase of the mobile market.
According to Elvis Zhou, Oppo’s Chief Executive for Europe, the company’s data shows that users under 35 are particularly drawn to AI-driven experiences such as instant translation, advanced photo editing, and contextual recommendations. Zhou says the brand sees “significant upside” in merging creativity and convenience through AI features that appeal to younger, tech-savvy consumers.
Despite recent caution in the global market, Zhou dismissed fears that the ongoing surge in AI investment represents a bubble, arguing that the technology’s integration into everyday products like smartphones will ensure sustainable adoption.
While Oppo projects optimism, China’s overall smartphone demand paints a more complex picture. Data from market research firms shows shipments fell by 2% in the first eight weeks of Q3 2025 and by 2.4% in Q2.
Even with heavy national subsidies designed to stimulate demand, brands have been focused on inventory destocking, a clear signal that buyer enthusiasm has yet to catch up with innovation.
Huawei led the Chinese smartphone market in Q2 2025 with a 17.6% year-over-year growth, though analysts at Counterpoint Research attributed that surge mainly to new mid- and high-end models rather than AI features. The pattern suggests that while AI has captured consumer curiosity, it has not yet translated into large-scale shipment growth.
Globally, smartphone shipments edged up by only 1% during Q2 2025, indicating that even with widespread AI integration, market recovery remains fragile. Economic headwinds, including tariffs and inflation, continue to dampen demand for low-end Android devices, a segment Oppo historically relied on in emerging markets.
Europe represents Oppo’s next frontier. In Western Europe, where Oppo ranked fifth in smartphone shipments during Q2 2025, the company is prioritizing high-end devices packed with AI capabilities. The goal is to differentiate through premium design, intelligent camera systems, and AI-assisted productivity tools.
However, Europe’s market dynamics differ sharply from China’s. Growth in countries like the UK and France remains sluggish, with projections hovering around -0.8% in 2025, and consumers are holding onto devices for longer. To counter this, Oppo is exploring partnerships and trade-in programs to make premium models more accessible.
Only 31% of European buyers currently trade in old smartphones, leaving room for expansion in the secondary market. Research from CCS Insight estimates that up to 100 million devices could be resold annually if owners engaged in forward trade-in schemes, where a future buyback price is locked in at purchase. Such programs could also help meet EU sustainability mandates while supporting Oppo’s expansion strategy.
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