Chinese Smartphone Giants OPPO, Vivo Target DJI in Handheld Camera Push
Chinese smartphone makers OPPO and Vivo are moving into the lucrative handheld camera market, a strategic pivot aimed at capturing new growth as they battle a slowdown in their core business and challenge incumbents like SZ DJI Technology and GoPro Inc.
OPPO has initiated a project to develop a handheld gimbal camera, a person with direct knowledge of the matter said. The new product line will be managed by the smart imaging team within the company’s Find product planning division. In response to inquiries, OPPO stated that there have been no recent changes to its imaging team.
The move follows reports that rival Vivo started a similar project in late 2024. Vivo's first handheld camera has completed the molding stage and is expected to launch in 2026, according to people familiar with its plans, who noted that a team of over 200 has been assembled for the initiative. Vivo has not officially commented on the matter.
The entry of two of China’s largest electronics manufacturers threatens to reshape a market long dominated by specialists. The push is fueled by the sector's high profitability and a pressing need for the smartphone giants to diversify revenue streams amid increasing competition and market saturation.
A Wake-Up Call From a High-Flying IPO
A key catalyst for the smartphone makers’ newfound interest appears to be the stellar market debut of camera maker Insta360. The company, a leader in 360-degree cameras, went public on Shanghai's STAR Market in June 2025. Its shares surged 285% on the first day, and its market capitalization, which currently exceeds RMB 100 billion yuan, briefly surpassed RMB 140 billion.
This valuation brought Insta360 into the same league as OPPO and Vivo, which are estimated by some institutions to be worth around RMB 140 billion despite generating annual revenues of over RMB 200 billion yuan (approx. US$28 billion). According to a former OPPO employee, OPPO’s decision to launch the camera project came after Insta360’s successful IPO, reversing a long-held internal consensus that the market was not worth entering.
Seeking Growth Beyond a Saturated Smartphone Market
OPPO and Vivo’s exploration of new product categories comes as their dominance in the smartphone arena is challenged. Global smartphone shipments declined to 288.9 million units in the second quarter of 2025, according to data from Canalys, with both OPPO and Vivo experiencing market share erosion as they fell further behind Apple, Samsung, and Xiaomi Corp.
This has intensified the search for a "second growth curve." Historically conservative in expanding beyond their core mobile business, both companies are now more willing to venture into new hardware segments. "This market has only exploded in the last two years; it's growing fast and has good profit margins," said a Vivo marketing employee. "We are giving it a try. What if it becomes our next major business line?"
Leveraging Smartphone Expertise and Supply Chains
For smartphone veterans like OPPO and Vivo, the barriers to entry in the handheld camera market are relatively low. Core technologies, including image stabilization, color science, and AI-powered editing algorithms, are areas where both companies have invested heavily for their high-end smartphones. Each company maintains an imaging R&D team of over 1,000 engineers and has invested more than RMB 10 billion in the field over the past decade.
Their supply chain power also provides a significant advantage. Key components for handheld cameras, such as SoCs and camera modules, are less complex than those for smartphones, and the suppliers often overlap. OPPO and Vivo are major clients for top optical component manufacturers including Sunny Optical Technology, O-Film Group, and Q Technology (Group).
"It's not difficult for phone makers to enter this market," a former DJI R&D employee commented. "They were clearly stimulated by the popularity of DJI's action cameras."
The Allure of High Margins and Low Costs
The financial incentives are compelling. According to data from Frost & Sullivan, gross margins for the latest flagship action cameras from both DJI and Insta360 exceed 50%, a stark contrast to the fiercely competitive smartphone industry. This high profitability, combined with a relatively low initial investment, makes the segment particularly attractive.
An internal cost assessment at Vivo suggested that the company could break even on its investment by selling just a few hundred thousand units. Analysts agree that this strategic expansion could pay off. "As the scale of this market grows, it has the potential to improve the profit structure for companies whose earnings are predominantly based on smartphones," a CICC analyst noted.