The purpose of this study is to analyze how a Chinese smartphone maker OPPO, despite being a latecomer, grew to the top of intensely competitive and stagnant Chinese smartphone market in 2016. As the first-time buyers looking for affordable smartphones are reducing following the market saturation, a different kind of competition is emerging in the Chinese smartphone market. Customers no longer prefer product configurations simply based on price- performance trade-offs and look for products that can meet their specific needs. As a result, Apple's smartphone sales declined for the first time since entering the Chinese market, and Samsung, the world's largest smartphone maker, has been pushed out of the top 10 in China. In addition, Xiaomi's market share decreased by 36% who was highly touted in terms of price- performance trade-offs. On the other hand, OPPO's sales volume was doubled from the previous year and occupied the first place in the Chinese smartphone market in 2016. This study examines how, in spite of intense competition and mature market demand, OPPO, a latecomer, succeeded in redefining existing value propositions of the industry and creating a big enough new market area by innovating customer values in detail. The upcoming challenges that OPPO might face and should overcome are also discussed.