Oppo begins absorbing Realme in India, triggering layoffs as smartphone consolidation deepens
Chinese smartphone maker Oppo has begun absorbing the India operations of Realme, marking a significant consolidation move in one of the world’s most competitive handset markets. The restructuring has already led to job cuts in sales and support functions, according to people familiar with the development.
Realme, which launched in 2018 as an Oppo sub-brand before spinning off later that year, is now being repositioned globally back under the Oppo umbrella. In India, the process is under way but is expected to unfold gradually.
“In China, this has already been done. In India, it’s a bit different right now because there are ongoing legal issues involving Oppo. So they can’t move as aggressively here, but this will happen gradually and across functions,” a person familiar with the matter said, requesting anonymity because the discussions are private.
Sources said Realme sales teams have already been asked to move to a revised structure, while some employees in sales and service network roles have been asked to resign by April 30. Oppo’s marketing and service networks are expected to take on a larger share of the combined operations.
Oppo and Realme did not respond to queries seeking comment.
Why it matters: Cost pressures and competition are reshaping India’s smartphone market
The move reflects rising cost pressures and slower global smartphone demand, which are forcing brands to prioritise profitability over rapid expansion. India remains a high-growth market, but it is also fiercely price-competitive, with thin margins and heavy spending on distribution and marketing.
Maintaining parallel structures under the same corporate group is increasingly seen as inefficient. Industry analysts say overlapping teams in R&D, supply chain, offline retail and after-sales service add to fixed costs at a time when component prices — especially memory — have been volatile.
The consolidation suggests that Chinese smartphone brands are entering a more disciplined phase in India, shifting from market-share grabs to cost optimisation and margin protection.
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What we know so far: Layoffs have begun and backend functions are being merged
Multiple people aware of the process said the integration is already visible in certain functions.
Key confirmed elements include:
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Realme sales teams being shifted to a new structure
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Layoffs or forced resignations in sales and service roles
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Greater reliance on Oppo’s marketing and after-sales network
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R&D already largely integrated between the brands
One source said the integration will focus first on “employee-heavy” areas such as offline distribution and support functions, where duplication is most costly.
Brand identities, however, are expected to remain separate in the near term, particularly in front-end marketing and product positioning.
What remains unclear: Legal issues and timeline may slow full integration
While the direction of travel appears clear, several aspects remain uncertain.
It is not yet clear:
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How deep the layoffs will run beyond initial teams
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Whether product portfolios will be rationalised
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How quickly legal hurdles involving Oppo in India may be resolved
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Whether Realme will lose strategic autonomy in pricing and launches
Sources said discussions are ongoing and further restructuring could occur over the coming months. Companies have not publicly outlined a formal roadmap.
Market and sector impact: Smartphone competition could intensify among survivors
The Indian smartphone market is already dominated by a handful of large brands, and consolidation could further tilt the field toward scale players.
Potential sector effects include:
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Reduced internal competition between Oppo and Realme
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More disciplined pricing strategies
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Lower channel conflict in offline retail
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Stronger bargaining power with suppliers
Analysts say consolidation may allow larger brands to protect margins, but it could also reduce the variety of aggressive price-led launches that previously defined the segment.
There is no direct stock market impact in India because these brands are not locally listed, but the moves are closely watched by component suppliers, distributors and contract manufacturers.
Broader context: A familiar playbook within China’s smartphone ecosystem
This is not the first such consolidation. In 2021, OnePlus moved closer to Oppo, integrating R&D and several operational functions in India. That move was also widely viewed as cost-driven.
A second source described the logic as straightforward. “For BBK, both brands operate under the same parent. If the parent is one, why run fully separate operations? Align operations and ideally the P&L — that’s how costs get optimised.”
BBK Electronics Corporation — which deregistered in 2023 — was known as the parent ecosystem behind Oppo, Vivo, OnePlus and Realme. While corporate structures have evolved, operational linkages between brands remain common.
The model increasingly resembles Vivo and its sub-brand iQOO, which operates within Vivo rather than as a fully independent entity.
What analysts are saying: Sub-brand strategies are becoming the norm
Industry analysts say the Oppo-Realme move fits a broader global shift.
“Similarly, we anticipate that brands will increasingly move towards sub-brand strategies and optimise resources, especially those that have achieved global scale with over 50 million shipments,” said Tarun Pathak, Research Director at Counterpoint Research.
He added that strategies are shifting from “aggressive expansion” to a more conservative approach with fewer overlapping products and targeted investments in priority markets.
“Consequently, we expect these brands to adopt a more conservative stance towards non-core markets over the next one to two years,” Pathak said.
What it means for investors and stakeholders: Focus shifts to efficiency
For investors tracking the technology and consumer electronics ecosystem, the development signals a maturing phase in India’s smartphone sector.
Implications include:
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Greater focus on cost discipline
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Potential margin improvement for large players
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Tighter control over distribution networks
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More selective global expansion
For employees and channel partners, however, consolidation often brings short-term disruption even if it improves long-term sustainability.
What to watch next: Signals of deeper consolidation ahead
Key watchpoints include:
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Whether other Chinese brands follow similar consolidation paths
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Any public statements from Oppo or Realme
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Changes in product launch frequency
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Shifts in offline distribution strategies
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Regulatory or legal developments affecting Oppo in India
The Indian smartphone market remains large and strategically important, but the era of unchecked expansion may be giving way to operational discipline.
For now, Oppo’s absorption of Realme suggests that scale alone is no longer enough — efficiency is becoming the new competitive edge.
