2006. If you are an audiophile in the United States and you are paying attention to the Blu-ray disc player market, you are about to encounter a brand called OPPO Digital. The company launched in Menlo Park, California as a subsidiary of a Chinese consumer electronics manufacturer you have probably never heard of, and it is selling high-definition disc players online only, with no retail presence, to buyers who care more about specifications than about where they can walk in and touch the product. The players are exceptional. The company behind them is stranger and more interesting than the product category suggests.

OPPO the parent company was founded on October 10, 2004 in Dongguan, China by Tony Chen, with Duan Yongping, the founder of BBK Electronics, providing the financial architecture and strategic direction. BBK had spent the late 1990s building a conglomerate around educational electronics, DVD players, and consumer audio hardware. The OPPO brand had been registered since 2001 — Duan’s team spent three years testing phonetics across more than 100 countries, confirming that “OPPO” carried no negative connotations anywhere and was rated by testers as “the most playful pronunciation” they could find. The brand-building project was global from the idea stage, which is unusual for a Chinese consumer electronics company in 2001.

OPPO Digital and why it matters for the smartphone story

OPPO Digital is not the smartphone company. It is a wholly separate operation in Menlo Park that builds audiophile-grade Blu-ray players, headphones, and headphone amplifiers. The BDP series of Blu-ray players will, by 2009, be described in home theater forums as “the Swiss Army knife of Blu-ray players” — universal disc compatibility, reference-level video processing, sound quality that competes with players costing three times as much. OPPO Digital builds a devoted following among home theater enthusiasts who have never heard of the parent company and could not locate Dongguan on a map.

The reason this matters for the OPPO smartphone story is structural. OPPO Digital proves in the US market, starting in 2006, that an OPPO product can earn premium positioning through engineering quality alone, without retail presence, without celebrity marketing, without carrier subsidies, and without brand recognition. The playbook the smartphone division will attempt fifteen years later — premium positioning on technical merit in a market where OPPO has no legacy — is the same playbook OPPO Digital is running right now in the US home theater market. The fact that most smartphone reviewers in 2018 will treat OPPO’s Western ambitions as surprising is evidence that the consumer electronics and consumer tech press operate in different ecosystems. OPPO has been in the US, selling premium hardware to quality-focused buyers, since 2004.

The mobile turn and what it signals

OPPO’s first mobile phone, the A103 “Smiley Face,” has just launched in China in May 2008. The consumer electronics division that has been making MP3 players, MP4 players, and now OPPO Digital’s audiophile hardware in the US is pivoting toward mobile at the moment when every Chinese consumer electronics company that wants to be relevant in the next decade understands it has to. The A103 is not remarkable hardware. What it represents is OPPO making a declaration about where it sees its future. In 2006, the year OPPO Digital is establishing its US audiophile reputation, the parent company in Dongguan is already planning the mobile pivot. The two trajectories, premium Western audiophile hardware and mass-market Chinese mobile phones, are happening simultaneously from a company with a two-year history.

That simultaneous ambition, operating at the premium Western end and the volume Chinese end at the same time from the same corporate parent, is the early expression of the BBK brand architecture that will eventually encompass OPPO, Vivo, OnePlus, and Realme. The architecture is visible in embryonic form right here, in 2006, in a Menlo Park office selling Blu-ray players to American audiophiles and a Dongguan factory preparing a feature phone for Chinese consumers. The company that becomes the fourth-largest smartphone manufacturer in the world starts here.

Part of OPPO: The Complete Story, my full history of OPPO from DVD players to the BBK empire.