New Delhi: Chinese smartphone maker Oppo said it will shut down its chip design unit, citing uncertainties in the global economy and smartphone industry. The company, one of China’s best-selling domestic smartphone brands, said it will wind down operations of its Zeku unit, which it set up in 2019. Its products include the MariSilicon X chip, a neural processing unit (NPU) that optimizes images. For video and photography taken on a smartphone.
“Due to the uncertainties in the global economy and smartphone industry, we have had to make difficult adjustments for long-term growth,” said a company representative. ,Also Read: Zomato CEO’s Car Collections: Check Out List,
China’s smartphone market, the world’s largest, is struggling to recover from its worst slump as cost-conscious consumers continue to shy away from big-ticket purchases even after the country lifted zero-Covid restrictions. ,ALSO READ: ‘I’m excited to help transform Twitter:’ Twitter’s new CEO’s first tweet,
In 2022, smartphone shipments are set to decline by 14 percent and total unit shipments will fall below 300 million for the first time in a decade. Research firm Canalys said last month that total smartphone shipments fell 11 percent year-on-year to 67.2 million units in the first quarter, the lowest quarter since 2013.
Oppo and its Chinese rivals such as Xiaomi set up in-house chip design units in a quest for self-reliance after the US crippled Huawei Technologies’ smartphone division with sanctions that barred it from sourcing key components.
Oppo is owned by BBK Electronics, which also owns Vivo, another top-selling Chinese smartphone brand.