- BBK Electronics owns Oppo and Vivo. It also owns OnePlus and Realme smartphone brands whose India sales for FY19 are still not available
- Oppo’s sales went up by 80 per cent at Rs 21,524.6 crore, while Vivo grew by 54 per cent at Rs 17,201.79 crore in FY19
According to a recent report by ET, the combined sales of Chinese smartphone makers, Oppo and Vivo, grew by 67 per cent to Rs 38,726 crore in the fiscal ending March 2019 on a relatively higher base.
On a standalone basis, Oppo’s sales went up by 80 per cent at Rs 21,524.6 crore, while Vivo grew by 54 per cent at Rs 17,201.79 crore in FY19. As per the latest filings by the companies, the combined losses of Oppo and Vivo went up in FY19 by 47 per cent to Rs 707 crore. While Oppo’s net losses went up by 93 per cent to Rs 688 crore in the same fiscal year. Meanwhile, Xiaomi and Samsung were profitable in FY18.
Analysts told ET that the losses of Oppo and Vivo went up the last fiscal in India since they have considerably hiked their fixed assets such as property and equipment, and manufacturing more inventory than that can be sold.
Mohit Yadav, the founder of business intelligence platform Veratech Intelligence, told the news daily that Owing to the impending hike in customs duty on mobile phones, BBK Electronics is aggressively increasing its manufacturing capacity in India.
Increase in inventory
He added the same is evident by the increase in the cost of materials consumed which was at 68 per cent in Vivo and 109 per cent in Oppo. The inventory has increased by almost 300 per cent in Vivo and 200 per cent in Oppo. This shows BBK’s confidence in Indian markets. The company does not see a slowdown in cellphone consumption happening anytime soon.
BBK Electronics owns Oppo and Vivo. It also owns OnePlus and Realme smartphone brands whose India sales for FY19 are still not available.