Discuss the impact of OPPO's car-making on Xiaomi Group and share a few perspectives
1 [Why make cars?]
The smartphone market structure has stabilized, and smartphone giants are looking for new growth points. Currently, the lateral expansion into IoT smart hardware ecosystems does not offer as large a market capacity as smartphones themselves. Moreover, it is not a single-category market, making it hard to scale. While it must be pursued, it is not the optimal market.
Therefore, the largest expandable technology sector left for smartphone giants is smart vehicles. Smart vehicles, being a single category with sufficiently large market capacity, can keep companies deeply engaged for the next 20 years without needing to switch tracks.
Smart vehicles represent the most suitable technology sector for smartphone giants to explore new growth opportunities.
2 [How to make cars?]
OPPO will definitely not adopt Huawei's open model,
nor will it adopt Baidu's joint venture model with traditional automakers.
OPPO must be a wholly-owned subsidiary, manufacturing entire vehicles under its own brand, with control over every step and every detail.
3 [What are the chances of success?]
Looking at the development history of several companies that emerged from BBK Electronics (OPPO, VIVO, BBK, Little Genius, along with distant relatives PDD Holdings and J&T Express), it's clear that OPPO’s venture into car manufacturing will absolutely succeed and will certainly become one of the top 10 domestic automobile brands.
It’s a pity that it is not a publicly listed company; we cannot buy shares or participate in the company’s growth.
4 [Impact on Xiaomi’s car project]
Xiaomi’s stock price fell today. I don’t know if it is related to rumors about OPPO’s car-making plans, but personally, I think OPPO…