Oppo
Strategic Concepts & Mechanics
Primary Evidence
"China leads the world in deploying ultrahigh-voltage transmission lines, high-speed rail, and 5G networks. Chinese manufacturers make machine tools—die-casting machines, steel presses, robotic arms—that approach German and Japanese levels of quality. They’ve muscled out most other Asian competitors on consumer electronics. Phone makers like Huawei, Oppo, Vivo, and Xiaomi tapped into the worker and component ecosystem that Apple helped to build. In 2025, the world’s largest phone makers are Apple, Samsung, and a half dozen Chinese firms that concentrate on sales to developing countries."
"So in 2016, when iPhone margins were 33 percent, Chinese rivals Oppo, Vivo, and Xiaomi were earning 7 percent, 6 percent, and 2 percent margins, respectively. In other words, the Apple Squeeze was instrumental to how Apple attained industry-leading margins. The message was: *We won’t pay you much, but the experience will be invaluable*."