Top

Insights Tag: Chinese ODM

Global ODMs/IDHs’ Smartphone Shipments Fall 5% YoY as OEMs Cut Orders

  • Global ODM/IDH smartphone shipments fell 5% YoY in 2022 due to economic pressures and weaker demand from China and Europe.
  • The share of outsourced designed shipments continued to increase in 2022 compared to that in 2021.
  • Longcheer, Huaqin, and Wingtech retained their dominance in the global ODM/IDH smartphone market, accounting for 76% share in 2022, compared with 70% in 2021.

  Beijing, New Delhi, Hong Kong, Taipei, Seoul, San Diego, Buenos Aires, London – March, 2023

Smartphone shipments from Original Design Manufacturers/Independent Design Houses (ODMs/IDHs) declined 5% YoY in 2022, according to Counterpoint Research’s latest Global Smartphone ODM Tracker and Report.

Senior Research Analyst Shenghao Bai said, “The YoY decline in ODM/IDH companies’ shipments in 2022 was driven by weak performance from OPPO Group, Transsion Group, Lenovo Group and HONOR. These smartphone OEMs were hurt by economic headwinds during the year and the negative effects were passed directly to their ODM partners.”

Bai added, “However, the contribution of ODMs toward smartphone shipments has been increasing. For instance, the proportion of ODM shipments in vivo rose rapidly in 2022 after the brand kicked off its cooperation with Huaqin and Longcheer.”

Longcheer, Huaqin and Wingtech continued to dominate the competitive landscape of the global smartphone ODM/IDH industry in 2022. The companies, also known as the ‘Big Three’, accounted for 76% of the global ODM/IDH smartphone market in 2022 compared with 70% in 2021.

Global Smartphone ODM/IDH Vendors Shipment Share, 2022

Global Smartphone ODM & IDH Vendors Shipment Share 2022

Source: Counterpoint Research’s Global Smartphone ODM/IDH Tracker, 2022

Commenting on the performance of the leading ODMs, Senior Research Analyst Ivan Lam said, “Longcheer’s shipments surged in 2022 due to strong orders from Xiaomi and Samsung, helping the company rank first in terms of shipment share. Meanwhile, Huaqin managed to remain one of the leaders among ODMs due to its diversified client portfolio and an increase in orders from vivo, the top smartphone OEM in China. In contrast, Wingtech saw only a modest YoY increase in shipments, as it continues to view smartphone ODMs as only one component of its overall ODM business.”

Lam further added, “In Tier 2, Tinno’s shipments continued to grow steadlity after the spin-off of the WIKO brand, due to successful marketing with major carriers in the US, Japan and Africa. Its partnerships with Lenovo and Transsion also contributed to an increase in shipments. MobiWire experienced a significant rise in shipments after winning Transsion’s projects. Additionally, its recent collaboration with TCL is expected to serve as an alternative revenue source as TCL shifts its focus to the below $300 segment.”

“The leading ODM players are actively expanding their ODM and EMS services to other smart device categories, with Huaqin ranking first in shipments in broader smart devices categories. To enrich their portfolios, ODMs are actively exploring sectors such as components, semiconductors, automotive and XR products. They are trying to put more helmsmen in place to ensure their company sails more steadily in the face of global headwinds,” Lam said.

China’s manufacturing sector has been recovering after COVID-19 restrictions in the country were lifted. China’s capacity is expected to return to normal by 2023. Meanwhile, the global electronic industry’s manufacturing diversification continues to grow.
Commenting on these trends, Bai said, “Smartphone OEMs are investing heavily in India. Meanwhile, EMS companies are expanding their assembly lines to India, Southeast Asia, LATAM and other regions. India’s local manufacturing will be able to fulfill the domestic demand and will also be sufficient for exports.”

Counterpoint Research’s market-leading Global Smartphone ODM Tracker and Report is available for subscribing clients.

Feel free to contact us at press@counterpointresearch.com for questions regarding our in-depth research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, USA, China and India.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

 Analyst Contacts 

Ivan Lam


ivan.lam@counterpointresearch.com

Shenghao Bai


shenghao.bai@counterpointresearch.com

Alicia Gong


alicia.gong@counterpointresearch.com

Counterpoint Research


press@counterpointresearch.com

Related Posts

  1. Apple Contribution to ‘Made in India’ Smartphone Shipments Reached 25% in Value Terms in 2022
  2. Apple First to Capture 8 Spots in List for Global Top 10 Smartphones
  3. Global CIS Market Annual Revenue Falls for First Time in a Decade
  4. Global Outsourced Manufacturing Smartwatch Shipments Rose 15% YoY in H2 2022
  5. Global Smartphone AP (Application Processor) Market Share: By Quarter
  6. Global Smartphone Shipments 2011 - 2022
  7. Global Smartphone Shipments Share - Last Eight Years of Winners & Losers
  8. Indonesia Premium Smartphone Shipments Grow 21.2% YoY in 2022
  9. Infographic: Q4-2022 | Smartphones | Mobile Market Monitor
  10. LATAM Smartphone Shipments Mark Worst Q4 in 9 Years, Fall 14% YoY
  11. MEA Smartphone Shipments Drop 12% YoY in 2022 to Reach Lowest Level Since 2015
  12. MWC 2023 Day 1: HONOR Magic5 Series Launch, OnePlus 11 Concept, and more
  13. MWC 2023 Day 2: TECNO Phantom V Fold, realme GT3 240W, CloudSIM™ and More
  14. Premium Market Captures More Than Half of Global Smartphone Revenue in 2022 For First Time
  15. STMicro Beats Q1 2023 Earnings Expectations Despite Chip Shortages
  16. Samsung, Apple, ZTE, HONOR Shine as Colombia Smartphone Shipments Decline 3% YoY in 2022

Outsourced Manufacturing Captures More Than Half of Global Cellular IoT Module Shipments in H1 2022

  • Cellular IoT module outsourced manufacturing (ODM/EMS) grew 33% YoY in H1 2022.
  • Top 10 ODM/EMS players captured two-thirds of IoT module outsourced manufacturing in H1 2022.
  • Cellular IoT module outsourced manufacturing to grow at a CAGR of 17% until 2026 from 2021.

New Delhi, Beijing, Hong Kong, San Diego, Buenos Aires, London, Seoul – October 25, 2022

Global cellular IoT module outsourced manufacturing accounted for 52.4% of total IoT module shipments in H1 2022, according to the latest research from Counterpoint’s Global IoT Module Manufacturing Tracker. In terms of global cellular IoT module manufacturing, original design manufacturers (ODM) saw the fastest growth in H1 2022 at 45% YoY, followed by electronics manufacturing services (EMS) at 30% and in-house manufacturing at 21%. After declining in Q1 2022, the global cellular IoT module market recovered in Q2 2022, despite macroeconomic headwinds and lockdowns in China, the largest IoT market.

Speaking on ODMs and EMSs, Senior Analyst Ivan Lam said, “In the past few years, leading Chinese OEMs have grown significantly in size. They have experience in managing supply chain partners and manufacturing allies. Leading OEMs have brought in multiple supplier policies to maintain their cost competitiveness, which gives them an advantage in terms of cost offering”.

ODM/EMS Shipments Share, H1 2022

Source: Counterpoint Global Cellular IoT Module and Chipset Tracker by Application, Q2 2022

The top 10 ODM/EMS players captured two-thirds of IoT module outsourced manufacturing in H1 2022. The leading ODM/EMS suppliers for IoT module manufacturing, such as BYD Electronics, TDG-Tech and Qisda, are mainly from Mainland China and Taiwan. At the same time, leading traditional EMS companies, such as Zollner, Jabil and USI, are also helping the top IoT module OEMs in their global expansion.

Lam added, “Manufacturing cost is still one of the key elements of an IoT module’s cost structure, apart from the cost of the components. Leading OEMs are growing rapidly in China and they are likely to predominantly hire manufacturing partners that have production sites within the country. However, we observed that OEMs also hired EMSs with global production sites, such as production facilities in Mexico or Brazil to cater to the North America and LATAM markets. We forecast the manufacturing capacity utilization in India, Southeast Asia and LATAM will continue to grow given the significant increase in IoT module applications in these markets.”

Commenting on the outlook for IoT module manufacturing, Senior Analyst Soumen Mandal said, “We are expecting outsourced manufacturing shipments to grow at a CAGR of 17% between 2021 and 2026. The soaring IoT module market, driven by innovation and digital transformation, especially in the enterprise segment, will play a pivotal role in IoT module manufacturing. IoT module players may focus on building platforms and services instead of manufacturing IoT modules as they present recurring revenue generation opportunities. This will also be an opportunity for ODM/EMS players to increase their footprint in the IoT module market. However, module players will try to increase control over the supply chain and look for vertical integration even for small components. This will help IoT module players reduce costs and remain competitive in the market. With higher demand in the market, top OEM players are also looking to expand their EMS supplier base to tap global markets.”

 

The comprehensive and in-depth “Global Cellular IoT Module Manufacturing Tracker – H1 2022” is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

 

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Ivan Lam

Soumen Mandal

Counterpoint Research

press@counterpointresearch.com

 

Related Reports:

 

Smartphone ODMs Achieve 7.2% YoY Growth in H1 2021, Show Resilience to COVID-19, Component Shortages

Hong Kong, San Diego, Buenos Aires, London, New Delhi, Beijing, Taipei, Seoul – September 8, 2021

Smartphone shipments from ODM/IDH (Original Design Manufacturer/Independent Design House) companies grew 7.2% YoY in H1 2021, according to the latest report from Counterpoint Research’s ODM/IDH Tracker. This comes as the global smartphone market rebounded 19% YoY in H1 2021. Smartphones with outsourced designs (from ODM/IDH companies) declined to account for a 36% share of the H1 2021 global smartphone shipments, down from 40% in H1 2020.

Counterpoint Research Global Smartphone Design Operation Status H1 2021
Source: Counterpoint’s Global Smartphone ODM/IDH Tracker, H1 2021

Senior Research Analyst Ivan Lam said: “Although the COVID-19 pandemic continued to materially impact the global smartphone market, ODMs managed to achieve decent growth. The growth of the ODM market was primarily driven by increasing orders from key clients like Samsung, OPPO Group, Xiaomi and Lenovo/Motorola. H1 2021 outperformer Xiaomi’s orders to ODM/IDH companies increased by more than 40% YoY. Xiaomi is now the largest client in the global smartphone ODM market.”

On component shortages and cost increases, Lam said: “We found that the impact of these issues was much higher on ODMs than on the in-house production of OEMs. This is due to the business model and mechanism of ODMs, under which ODMs produce only after receiving orders. Although ODMs have the FOPDI (Forecast, Order, Production, Delivery, Inventory) workflow with OEMs, ODMs tend to reserve lower component inventory than market forecasts, due to volatile market dynamics and cash flow management. As such, several OEMs suffered unexpected sales declines, while the lack of bargaining power undermined their ability to increase prices.”

Commenting on the different growth paths of global smartphone shipments and ODM/IDH shipments, Senior Research Analyst Yang Wang said: “ODM/IDH companies tend to produce mid- to low-priced smartphones. However, in the past year, OEMs paid more attention and channeled more resources towards more premium products. These products were mainly produced in-house and by EMSs. As a result, while the absolute shipment numbers from ODMs/IDHs increased, in-house and EMS shipments increased even more.” Counterpoint figures show smartphones priced at less than $200 dropped to a share of 47%, down from 54% a year ago.

Counterpoint Research Share of Global Smartphone Sales by Price Band H1 2021
Source: Counterpoint’s Smartphone Market Pulse Service, H1 2021

Looking at the competitive landscape of the global smartphone ODM/IDH market, Huaqin, Longcheer and Wingtech continued to dominate the market. The ‘Big 3’ now account for 76% of the global ODM/IDH smartphone shipments, up from 69% a year ago.

The component shortage and cost increase issues have put further pressure on the ODM industry. The Tier II and lower ODMs have been struggling to secure consistent supply from upstream partners, and the lack of bargaining power means they struggle to keep supply costs down. On the other hand, leading OEMs have the power to influence upstream component vendors, both in supply and price.

Ranking and Growth of Global Smartphone ODM/IDH Vendors H1 2021
Source: Counterpoint’s Global Smartphone ODM/IDH Tracker, H1 2021

Commenting on the ODM dynamics, Lam said: “Huaqin continues to retain the number one spot among ODMs. Longcheer saw a significant increase thanks to Xiaomi’s outstanding performance. Tinno also performed well, due to increasing orders from Lenovo/Motorola, which saw success in LATAM. Going forward, we expect continued momentum of OEMs deepening partnerships with ODMs/IDHs and EMSs in H2 2021 and beyond.”

The latest “Global Smartphone ODM Report – H1 2021” is available here.

Counterpoint Research’s market-leading Market Pulse service for mobile handsets is available for subscribing clients.

Feel free to contact us at press(at)counterpointresearch.com for questions regarding our in-depth research and insights, or for press enquiries.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, USA, China and India.

Background:

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts: 

Ivan Lam

Yang Wang

Counterpoint Research
press(at)counterpointresearch.com

Related Posts

  1. China Handset Production Stops Shrinking For Now
  2. China Smartphone Internet Retail Sales Take 31% Share of Overall Market in H1 2021
  3. China Smartphone Market Share: Quarterly
  4. MediaTek Captures Record 43% Share of Smartphone AP/SoC Shipments in Q2 2021
  5. Monthly Pulse: Xiaomi Becomes #1 Smartphone Brand Globally for First Time Ever
  6. Q2 2021: China Smartphone Market Sees Lowest Q2 Sales Since 2012; vivo Leads as Huawei Plummets
  7. Smartphone ODMs See 12% YoY Growth in 1H 2020 Under Severe Market Headwinds

Coverage

Insights

Social media

Contact us

Copyright ⓒ Counterpoint Technology Market Research | All rights reserved

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.