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White Paper: Global Smart Devices ODM Industry 2022 (Chinese Simplified)

Global Smart Devices ODM Industry 2022 (Chinese Simplified)

WHITE PAPER

PDF | 89 pages
Published date: June 2022

In 2021, as the world’s major economies increase their efforts to popularize the COVID-19 vaccines, the world entered the post-COVID-19 period. In the post-COVID-19 era, while global manufacturing is recovering, it has experienced severe shortages of key components, mainly due to the severe imbalanced FOPDI (Forecast, Order, Production, Delivery, and Inventory) caused by force majeure such as the pandemic. 2021 was also a challenging year for the smart devices industry, and leading ODMs faced various challenges and pressures.

With the global 5G network development, the smart devices in the 5G era will accelerate the extension. The Internet of Things trend will become more and more prominent. The three major sectors of smart devices (Smartphones, Notebooks and Tablets), related wearable products, and the future smart home and smart travel will all rapidly enter consumers’ daily lives. For ODMs, the rapid expansion of smart devices brings enormous market potential. Leading ODM manufacturers have R&D and design, supply chain management and manufacturing capabilities, and the continuity of cooperation with leading brands in the smartphone field. Both have tremendous advantages and are the preferred partners for brand manufacturers to expand in new smart device sectors. Huaqin, Longcheer and Wingtech have made strategic moves into emerging fields such as smartwatches, smart speakers, and TWS headphones. The revenue capacity of the three major manufacturers’ ODM/IDH business has also been continuously improved.

This report will specifically analyze the industry status and future development trends of the smartphone sector of global smart device ODMs. The full version report includes the other six sectors like tablets, notebooks, smartwatches, TWS headsets, smart speakers and AR/VR hardware; please refer to the link.

  • Part I, Global Smart Devices Development Overview

  • Part II, 2015 – 2025 Global Smart Devices Overview, ODM/IDH/EMS up-to-date updates and look-forward. (Only includes smartphone sector)

  • Part III, Smart Devices ODM Opportunities and Trends; Risks Analysis. (This section has been shortened or omitted)

KEY HIGHLIGHTS

  • Infographic: Mobile Market Monitor
    (Q1 and Q2 2023)
  • Global Smartphone Shipments Market Data
    (Q3 2021 – Q2 2023)
  • China Smartphone Shipments Market Data
    (Q1 2022 – Q2 2023)
  • US Smartphone Shipments Market Data
    (Q1 2022 – Q2 2023)
  • India Smartphone Shipments Market Data
    (Q1 2022 – Q2 2023)

CONTRIBUTORS

John Doe
Designer
John Doe
Designer
John Doe
Designer
John Doe
Designer
John Doe
Designer
John Doe
Designer

Smartphone ODM/IDH Companies’ 2021 Shipments Rise 6.4% YoY Despite COVID-19, Component Shortages

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Taipei, Seoul – May 3, 2022

Smartphone shipments from ODM/IDH (Original Design Manufacturer/Independent Design House) companies grew 6.4% YoY in 2021, according to Counterpoint Research’s Global Smartphone ODM Tracker and Report, H2 2021. This is attributed to a rebound of 4.5% YoY in the overall global smartphone market in 2021. The share of smartphone shipments from outsourced designs (from ODM/IDH companies) increased to 37% in 2021, up from 36% in 2020.

Global Smartphone Design Operation Status, 2021

Source: Counterpoint Research’s Global Smartphone ODM/IDH Tracker, H2 2021
Source: Counterpoint Research’s Global Smartphone ODM/IDH Tracker, H2 2021

 Senior Research Analyst Ivan Lam said, “Although the pandemic continued to impact the global smartphone market, and specifically the 4G SoC supply, ODMs managed to achieve decent growth. The ODM market growth was primarily driven by increasing orders from key clients Xiaomi, Lenovo/Motorola and Transsion. Key ODMs for Xiaomi benefitted the most due to its 31% YoY growth in shipments in 2021.”

Senior Research Analyst Yang Wang added, “Huawei’s decline impacted the ‘Big 3’ and CNCE, as the embattled OEM’s outsourced orders dropped 78% YoY. These were partially offset by HONOR’s return in the second half of 2021. Overall outsourced orders by HONOR still dropped 11% YoY. But on a brighter note, we see the trend of in-house production being outsourced to ODMs continuing in the next few years. For example, vivo saw the first shipments of ODM-made devices in H2 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 70% of global ODM/IDH smartphone shipments, though the lead is down from 77% in 2020.

Ranking, Growth of Global Smartphone ODM/IDH Vendors

Ranking Growth of Global Smartphone ODM/IDH Vendors
Source: Counterpoint Research’s Global Smartphone ODM/IDH Tracker, H2 2021

Commenting on the leading ODMs’ performance, Lam said, “Huaqin captured the biggest share among ODMs. Longcheer’s shipments increased significantly, thanks largely to Xiaomi’s orders in 2021. Wingtech shifted its main focus in 2021 to the semiconductor and optical module sectors. Its smartphone shipments retreated mainly due to shortages of 4G SoCs at key clients. Tinno continued to trend in the right direction due to Lenovo and Motorola’s progress in LATAM markets and carrier businesses in North America and Africa.”

The diversification of manufacturing in the global electronics industry has continued. While smartphone OEMs are aggressively investing in India, EMS companies such as Foxconn, Pegatron, Compal and Wistron are expanding assembly lines to India, North America and Southeast Asia.

Commenting on these trends, Lam said, “Smartphone ODMs are gradually moving away from IDH services and focusing more on production and assembly services. Leading ODMs are also constructing local production lines in places like India, Southeast Asia and Brazil. However, one should be wary of limiting factors such as availability of skilled labor, sub-optimal supply chain ecosystem and local policy risks.”

 

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

Feel free to contact us at press@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.

Analyst Contact 

Ivan Lam
ivan.lam@counterpointresearch.com

Yang Wang
yang.wang@counterpointresearch.com

Counterpoint Research
press@counterpointresearch.com

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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

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