BBK Electronics Consolidates Realme and Oppo Amid Global Smartphone Market Pressures

BBK Electronics, the Chinese conglomerate behind smartphone brands Realme and Oppo, is merging operations to cut costs as the industry grapples with memory chip shortages and supply chain disruptions. The consolidation reflects broader pressures facing device manufacturers, with Counterpoint Research now forecasting a 2.1% decline in global smartphone shipments by 2026—a stark reversal from earlier projections of steady growth.

Chip scarcity, exacerbated by competing demand from AI developers, is driving up component costs. Smartphone prices are expected to surge 6.9% in 2025, nearly double prior estimates. 'The supply crunch has become structural,' notes Counterpoint analyst Neil Shah, 'with no relief in sight for memory-intensive devices.'

The move mirrors strategies by crypto hardware firms like Bitmain and Canaan, which faced similar supply constraints during Bitcoin’s 2021 bull run. As in smartphones, cryptocurrency mining rig manufacturers consolidated operations when chip shortages peaked at 30-week lead times.