Berikut Cellphone sales are not selling well, Oppo closes the Zheku chip business unit
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iwanrj.com – Jakarta – Oppo shuts down a subsidiary focused on making Zheku chip designs. Oppo’s main reason for closing Zheku was because the company was experiencing a financial crisis due to the slump in sales of the latest Oppo HP.
Oppo made headlines with a series of bad news. Previously, Oppo reportedly withdrew from France and stopped all its operations in Europe.
Even though he had denied it, Oppo’s ulcers, which were covering up its financial crisis, were increasingly revealed. This was reinforced by the news that the company decided to close the Zheku chip business unit.
The decision to stop Zheku’s operations was announced through an official statement a few days ago, as quoted Telset from Gizmochina on Friday (19/05/2023).
Oppo said that the global economic uncertainty and the unpredictable smartphone market were the reasons why the company decided to shut down Zheku.
Zheku himself plays a key role in Oppo’s chip development efforts, as it is this business unit that is the brains behind the creation of the Marisilicon X chip.
The advantage of this chipset is that it uses Imaging Neural Processing Unit (NPU) technology or can be called an image processor with the support of Artificial Intelligence (AI).
This chipset was first used by the Oppo Find X5 Series, to provide maximum photo and video content on smartphones. In its official statement, Oppo did not mention the fate of the Marisilicon X production or its newest chipset.
Oppo simply stated its commitment to responsibly managing the situation while continuing to provide quality products and value to customers.
This shows Oppo’s financial condition is not doing well. Despite being one of the biggest Chinese smartphone brands and ranking fourth in global shipments, Oppo has seen a decline in global smartphone sales.
According to IDC data, Oppo’s mobile phone shipments fell by 22% in 2022 to 103 million units. The company can foresee this decline continuing and wants to prepare itself for the challenges that will come in the future.
Saving money is one of the easiest ways to do this, and as you might expect, chip design is an expensive business, especially if you’re not turning a good profit. [NM/HBS]