According to Counterpoint Research's global smartphone ODM tracking and report on the second half of 2021, ODM / IDH (original design manufacturer / independent design house) companies' smartphone shipments will be in 2021. A year-on-year increase of 6.4%. This is attributed to a 4.5% YoY growth rebound in the overall global smartphone market in 2021. The share of smartphone shipments for outsourced design (from ODM/IDH companies) rose from 36% in 2020 to 37% in 2021.
Global Smartphone Design Operations in 2021
Analyst Ivan Lam said: "While the Covid-19 pandemic continues to impact the global smartphone market, especially 4G SoC supply, ODM has managed to achieve considerable growth. ODM market growth is mainly driven by orders from key customers Xiaomi, Lenovo/Motorola, and Transsion. Driven by the increase. Xiaomi's major ODMs benefit the most as shipments grow 31% YoY in 2021.
Analyst Yang Wang added: "Huawei's decline affected the 'Big Three' and CNCE as outsourcing orders from struggling OEMs fell 78% year-on-year. These were partially offset by Honor's return in the second half of 2021. Honor's Overall outsourcing orders are still down 11% YoY. But more optimistically, we see the trend of outsourcing in-house production to ODMs continue over the next few years. For example, Vivo shipped its ODM-manufactured terminals for the first time in the second half of 2021. "
Looking at the global smartphone ODM / IDH market competition pattern, Huaqin, Longcheer, and Wingtech continue to dominate the market. The "Big Three" currently account for 70% of global ODM/IDH smartphone shipments, but this is down from their 77% lead in 2020.
Global Smartphone ODM / IDH Vendors Ranking, Growth
When talking about the leading ODM performance, Ivan Lam said: "Huaqin has the largest share in ODM. Longche's shipments have grown significantly, mainly due to Xiaomi's orders in 2021. Wingtech will shift its focus in 2021. To semiconductor and optical modules. Its smartphone shipment decline was mainly due to the shortage of 4G SoCs for key customers. Tianlong is continuing to move in a positive direction due to the progress of Lenovo and Motorola in the Latin American market and operators in North America and Africa develop."
Manufacturing diversification in the global electronics industry continues. While smartphone brands are aggressively investing in India, EMS companies such as Foxconn, Pegatron, Compal, and Wistron are expanding their assembly lines to India, North America, and Southeast Asia
Commenting on these trends, Ivan Lam said: "Smartphone ODMs are gradually moving away from IDH services and focusing more on production and assembly services. Leading international ODMs are also building local production lines in places like India, Southeast Asia, and Brazil. However, people Constraints such as the availability of skilled labor, sub-optimal supply chain ecosystems, and local policy risks should be vigilant.”
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