Chinese smartphone manufacturer, Oppo, is making significant strides in the tech industry. According to Canalys, Oppo holds the second-ranking position in mainland China and is the fourth largest smartphone producer globally.

As part of their growth strategy, Oppo is placing emphasis on the development of artificial intelligence (AI). The company is reportedly engaging in weekly discussions with senior management from Google and Microsoft ahead of the international launch of its flagship phone.

The objective of these collaborations is to explore the potential of the next AI application. The emergence of generative AI, technology capable of generating human-like responses, has prompted major companies like Apple and Honeywell to harness its capabilities.

Oppo is also currently preparing for expansion in Europe, and while there are no immediate plans for the U.S., the company’s OnePlus brand accounts for approximately 60% of its revenue from Southeast Asia, Europe, and other overseas markets.

In terms of its global ranking, Oppo accounts for 9% of all smartphone shipments in the third quarter, placing it fourth behind Samsung, Apple, and Xiaomi.

While the U.S. possesses superior AI capabilities, experts believe Chinese companies like Oppo will have an advantage in consumer applications of the technology. This is despite the U.S. restrictions on the export of high-end chips to China.

Oppo’s upcoming flagship phone will reportedly feature AI writing and recording summary tools from Google’s Gemini and content generation features from Microsoft’s OpenAI products such as ChatGPT.

As part of its commitment to AI, Oppo announced in June that it plans to implement generative AI in 50 million of its devices this year. The company has developed its own AI models since 2020 and opened an AI center in February.

The company is also exploring the use of AI for production efficiency in its factories. AI integration in the manufacturing process can improve quality and stability, lower production costs, and increase unit yield.

In light of these advancements, Oppo is expected to reduce its manufacturing costs by nearly 40% over three years. Such technological integration with factory machines and systems could cut production time to six days, down from 16.

As the demand for AI-enhanced smartphones increases, Oppo’s commitment to AI technology positions it favorably in the global market.