OPPO yesterday unveiled the brand new Find X2 series in China via an online launch event. The new hero model is the vendor’s latest effort in the premium segment.

Powered by Qualcomm Snapdragon 865 chipset, the new 5G line-up spots a 6.7-inch customized QHD+ 120Hz OLED display from Samsung as well as OPPO’s proprietary 65W fast-charging capability. The new series has two major variants: a vanilla version and a Pro version. Their difference lies mainly on the rear camera side. The vanilla version offers a triple-camera setup with 5x hybrid optical zooming capability (48MP main /IMX586 + 12MP wide-angle/IMX708 + 13MP telescope /S5K3M5SX04). The Pro version upgrades the setup to 48MP main /IMX689 + 48M wide-angle/ IMX586 + 13MP telescope / S5K3M5SX05 with doubled zooming capability.

With display, fast charging, and rear camera as key differentiators, Find X2 series is priced at RMB 5499 (USD 793) for the vanilla version and RMB 6999 (USD 1010) for the pro version. Compared with its predecessor launched two years ago, the starting price rises around 10% up. These two models will hit Chinese market on March 14^th and it will land in more OPPO’s overseas market in the following months. In addition to that, OPPO introduced a special Lamborghini pro version which is priced at RMB 12999 (USD 1876).

Exhibit 1: OPPO Find X2 Series

The launch of new Find X2 series shows OPPO’s eager to tap into premium tier segment. Strategy Analytics predicts that premium smartphone volumes (above USD 300 wholesale) will see a healthy growth in the next five years, driven jointly by hardware innovations, 5G uptakes, and increasing replacement sales. OPPO is currently a key player in the USD300-399 sub-tier and we believe USD 400-499 tier and USD 500-599 tier represent new growth opportunities for the vendor. The launch of Find X2 series shows that OPPO’s ambition is more than that. The Pro versions are positioned at USD600+ sub-tier, which is currently dominated mostly by Apple, as well as Samsung and Huawei. The launch of Find X2 series is likely to create halo effect for OPPO’s whole product portfolio including Reno series and A series, thus to improve mind share of OPPO brand in affluent consumers and overall profitability.

To tackle the premium segments, the cooperation with operators is critical especially in OPPO’s new markets in Western Europe. In yesterday’s launch event, OPPO announced that its operator partner list has expand over 30 members, including Vodafone, Telefonica, T-mobile, and Orange. It is a major progress for OPPO’s channel expansion in overseas market. The partnership seems more long-term oriented as Western Europe is relatively slower in 5G adoption compared with USA, Japan, South Kore and China.