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What happened: Chinese smartphone manufacturer Oppo has abruptly shut down its Zeku chip design unit as it deals with the ongoing slump in the smartphone market. Details: Oppo formed Zeku in 2019 to design chips for its own devices. The move was intended in part to boost Oppo's self-reliance and curb its dependence on U.S. suppliers amid ongoing chip export restrictions. By the numbers: However, an uncertain economy and smartphone market have prompted it to abandon the unit. According to Canalys, the global smartphone market fell by 13% YoY in Q1 2023, the fifth consecutive quarter of decline. Oppo has seen its smartphone shipments plummet from 37.5 million in Q4 2020 to 25.8 million in Q3 2022. What it means: The move suggests that Oppo is confident in its ability to source components, either by avoiding sanctions or securing supplies within China.
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