Originally Posted by Neuromancer
Price competition in the low end is very tough. Differentiation in the low-end will also be very tough to accomplish. For someone like OPPO who does direct sales, there is no immediate need to release a player which competes in the low end.
Agreed. And most manufactures that work in this market segment do so by "locking out" certain features on the SoC for economy of scale. Also, the exclusion of premium chips or parts is to be expected. Exactly what they did with the BDP-80.
Look what Intel is doing now. You can pay Intel and they will give you a key to unlock additional performance from a given CPU.
Point is, in todays world, it's cheaper to build a premium product and dumb it down for the entry level market than to design two or more machines.
Look at the release of the BDP-80. It came nearly a year after the BDP-83 was on the market. OPPO was operating just fine on the BDP-83 and the BDP-83SE during that time period.
We're talking cross purposes here. Oppo Digital is a North American regional business unit of BBK-Oppo Electronics; BBK-Oppo Electronics is clearly one of the largest CE manufactures today. Oppo Electronics major markets are Eastern Europe and Asia. Oppo has the experience, knowledge, and products to work the low end of the market in the US if they choose to.
I believe the BDP-80 sold for $299. (Please correct me if I'm wrong) Not exactly the low end of the market as you can buy Sony, Panasonic, etc in the $149 or less range.
It cost approximately the same money to ship a $500 unit vs a $100 unit from China and on to the customer. Of course the $500 unit has more margin so why wouldn't you focus your efforts here? You make a higher return for the same logistic costs.
My point is that Oppo knows how to build and sell low cost machines. And, I believe there will be a replacement for the BDP-80 in time. Even Oppo states on their web site that:
Due to a shortage of major components, we have ceased production of this model.
Something will replace it. If you've ever done business in China you find out very quickly they do not leave dollars on the table.
At this point, the competitive position is to offer what they have with the BDP-83 with improved entertainment networking capability; the BDP-93. Oppo's primary business in the past has been OEM. They have established a brand name in the west with Oppo Digital. Diversification of product will continue.
Edit: Here's a link to information regarding the creation of the Oppo brand name for international markets and product recognition. The work was done by "Studio Dumbar" from the Netherlands with offices in Shanghai.http://www.dumbarbranding.com/en/ind...detail/6/oppo/