Vivo Will Reportedly Reintegrate Its IQOO Brand
Sub-branding was once a popular way for major Chinese smartphone makers to attract new demographics without damaging their brand reputation. The two-pronged strategy meant that the core smartphone business focused on the high-end market, while the sub-brands focused on the mid-range segment. However, as the global economic crisis deepened, some of these brands, such as Oppo and OnePlus, began pooling resources to cut costs. Vivo may follow suit and integrate the iQOO brand into its core business.
According to Chinese publication 36KR, Vivo is reintegrating the iQOO into its operations as part of a broader cost-cutting effort (via GSMA). The move means that iQOO's brand and online business will once again become part of Vivo's identity, and future iQOO models are expected to join the latter's smartphone line-up. Freelance stores and sub-brand counters are also closing as part of the consolidation.
Vivo and iQOO previously shared resources such as R&D group and supply chain before splitting off as independent companies. However, they had different planning methods, e-commerce operations and media strategies.
The iQOO may soon return under the Vivo umbrella
Xiaomi followed the same strategy that led to the spin-off of its former Poco sub-brand in 2020. Huawei and Oppo also used this tactic to carve out their place among the top Android phone brands. Oppo, the BBK family's Vivo sibling, launched the Realme brand in 2018 to counter Xiaomi's growing presence in the fast-growing Indian smartphone market with Redmi.
Regarding Vivo reuniting with iQOO, a former Vivo employee reportedly made the following statement to 36KR: “Internal leaders are still struggling. The future location of iQOO and how the team will be integrated is still unclear."
Android Police has also reached out to Vivo for comment, but we have yet to hear back. We will update this post when we receive a response.
It is unclear whether some iQOO employees will be let go as part of the restructuring, or whether the entire team will continue to work at Vivo.
